January’s US Economy Job Growth Falls Short of Expectations
In January, the U.S. economy saw an addition of 143,000 jobs, a figure that fell short of the anticipated 175,000. Despite this, the unemployment rate dipped to 4.0%, and employment gains from previous months were revised upward by 100,000 jobs.
The Bureau of Labor Statistics revealed that wage growth surpassed expectations, with average hourly earnings witnessing a 0.5% monthly rise and a 4.1% increase year-over-year. The healthcare sector led job creation with 43,700 new positions, followed by retail trade (+34,300) and government (+32,000).
“This may be considered a Goldilocks report – not too hot and not too cold,” stated Jeffrey Roach, chief economist for LPL Financial. The mixed results lend support to the Federal Reserve’s recent decision to hold off on interest rate cuts, given the uncertainty surrounding inflation and labor market conditions.
Private sector payrolls saw an addition of 111,000 jobs, falling below the estimated 141,000. Manufacturing experienced modest growth with 3,000 jobs, surpassing expectations of a 2,000 job decline. The report suggests that the labor market remains stable despite slower growth, with Fed Chair Jerome Powell indicating that the labor market is “broadly in balance.”
Source: Fox Business