• Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000, the Labor Department says.
• Economists surveyed by Dow Jones had expected payrolls to rise by 170,000.
• There were revisions. December’s big initially reported gain of 312,000 was knocked all the way down to 222,000, while November’s rose from 176,000 to 196,000.
• The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department.

U.S. jobless claims dropped to lowest in 50 years

The number of Americans filing jobless claims fell to the lowest in close to 50 years last week. Based on historical trends, LPL Financial analysts argue this could signal a recession is further off than many expect.

The big picture: Jobless claims are a leading indicator, LPL Research Chief Investment Strategist John Lynch says. Historically, a 75,000–100,000 increase in claims over a 26-week period has been associated with a recession.

• “The U.S. labor market remains strong and will help buoy consumer health and output growth this year,” Lynch said.

Yes, but: The data excludes 380,000 workers who went without pay because of the political impasse over President Trump’s plan to build a wall along the Mexican border.