Crushing expectations, the Bureau of Labor Statistics (BLS) reported Friday morning that employers created 476,000 new jobs in January. The unemployment rate ticked up slightly, to 4%, still very low by historical measure.  

The number to watch, however, is the labor participation rate, which edged upward by three-tenths of 1% last month, according to BLS. Since the pandemic hit, the labor force of the U.S. has shrunk more than expected. It’s simply not rebounded to its pre-pandemic level.