The unemployment rate dropped to 3.4 percent, the lowest level since 1969, despite the efforts of the Federal Reserve Bank to help curb record-high inflation.
The report, which revealed low unemployment, relatively few firings and many job openings, highlighted the presence of a resilient US labor market that is good for workers and has accelerated wage growth, and has contributed to increasing inflation due to employers' steady demand for staff.
The January wage data showed that average hourly pay rose 4.4 percent over last year, though it was slower than the 4.8 percent year-over-year increase in December. From December to January, wages increased by 0.3 percent, below the previous month's increase of 0.4 percent.
The government also increased its estimate for job gains in November and December by 71,000 positions.
President Joe Biden called the jobs report strikingly good news, stressing that his Republican critics were wrong about their warnings of high inflation and a future recession and job cuts.
Biden said that our plan is working because of the grit and resolve of the American worker.
Seema Shah, chief global strategist at Principal Asset Management, said this is a labor market on heat, as quoted by the Associated Press.
Since March, the Federal Reserve Bank has raised its key interest rate on eight occasions to slow the job market and curb inflation, which hit a 40 year high last year.
Despite some high-profile layoffs by big tech companies, such as Microsoft, Google and Amazon, most workers enjoy an unusual level of job security despite predictions of an approaching recession.