Payrolls increased more than 500,000 and the unemployment rate decreased to its lowest level in more than 50 years as 2023 began with an unexpected bang in the U.S. labor market.

Nonfarm payrolls grew 517,000 and the jobless rate dropped to 3.4 percent in January, according to the latest numbers from the Bureau of Labor Statistics. The unemployment rate is now at its lowest level since May 1969.

Estimated payroll gains for the previous two months were revised upward a total of 71,000 to 260,000 in December and 290,000 in November.

The January gain topped the 401,000 average monthly increase in payrolls in 2022.

Still, 5.7 million people were counted among those unsuccessfully looking for work in January. Of those, 1.1 million have been unemployed for 27 weeks or longer.

Another 4.1 million were counted among those working part-time because their hours were cut or they were unable to find full-time positions.

The labor force participation rate crept up a tenth of a point to 62.4 percent, but remained below the rate posted before the onset of the COVID-19 pandemic in the United States in early 2020.

Payroll gains for January were spread out among industry sectors. Employment increased  128,000 in leisure and hospitality, 82,000 in professional and business services, 58,000 in health care and 30,000 in retail trades. Government payrolls increased 74,000.

The average workweek lengthened three-tenths of an hour to 34.7 hours. The average manufacturing workweek lengthened four-tenths of an hour to 40.5 hours.

Average hourly earnings increased 10 cents to $33.03. Over the past year, hourly earnings rose 4.4 percent.