Many See Cause for Optimism Despite Slower US Job Growth

Consider looking past January’s so-so job growth.

Angelo Falcone (L) is interviewed by Eric Larkee for a bartender job at a job fair held by The Genuine Hospitality Group in Miami on Jan. 27, 2016. The restaurant group is expanding in South Florida and is hiring for all positions at its restaurants. On Friday, Feb. 5, the U.S. government issues the January jobs report. AP Photo/Lynne Sladky

WASHINGTON—Consider looking past January’s so-so job growth.

At first glance, Friday’s government report on U.S. hiring was a downer—151,000 added jobs, well below the pace of the previous few months.

Yet once you take a fuller view, a brighter picture of the job market emerges: A sub-5 percent unemployment rate. Healthy pay raises. And a stream of people who grew confident enough in the job market to start looking for work.

“The January report is a solid report in disguise,” said Douglas Holtz-Eakin, a former director of the Congressional Budget Office and president of the conservative American Action Forum.

The January report is a solid report in disguise.

— Douglas Holtz-Eakin, president, American Action Forum