Business

Biden touts January jobs gain in face of omicron surge

President Biden on Friday touted the resilience of the U.S. economy after the country gained 467,000 jobs in January despite warnings from economists of a likely decline in employment. 

Biden addressed reporters after the release of a federal jobs report that showed the labor market holding strong amid a record-breaking surge of COVID-19 cases. The Labor Department also revised the November and December employment gains up by a combined 709,000 jobs.

“I know that January was a very hard month for many Americans,” Biden said in Friday remarks at the White House.

“I know that after almost two years, the physical and emotional weight of the pandemic has been incredibly difficult to bear for so many people. But here’s the good news: We have the tools to save lives and to keep businesses open and keep schools open, keep workers on the job and sustain this historic economic comeback.”

The rapid spread of the omicron coronavirus variant pushed COVID-19 cases to unprecedented heights in January. The seven-day average of daily cases peaked above 800,000 as the Labor Department was running surveys used to calculate the monthly employment report and triggered alarm bells in private sector economic data.

While many economists expected omicron to drive the first net decline in U.S. employment since December 2020, the labor market held strong in the face of another pandemic-driven setback.

The strong January jobs report is a welcome break for Biden after months of deepening economic concerns among voters. Even though the economy gained more than 6 million jobs in 2021 and grew at the fastest rate since the 1980s, Biden has fallen sharply in polls of his approval rating and handling of the economy due largely to a burst of inflation.

Republican lawmakers have blamed Biden for stoking inflation through the American Rescue Plan — the $1.9 trillion stimulus bill enacted last year — and steps to limit federal funding and approval of fossil fuel projections. While many economists say the Biden stimulus bill likely contributed to inflation, they also give it partial credit for the stellar pace of the recovery.

Biden acknowledged the pressure of inflation in his Friday remarks and touted steps by his administration meant to reduce consumer prices: investments in infrastructure though the bipartisan bill signed last year, using antitrust law to reduce corporate consolidation and bolstering domestic manufacturing.

“I’m going to continue to do everything in my power to work with the Congress to make our capitalist system work better, provide more competition and lower prices for American consumers,” Biden said.

“Average people are getting clobbered by the cost of everything. Gas prices at the pump are up — we’re working to bring them down, but they’re up. Food prices are up and we’re working to bring them down as well,” he continued.