The US added 143,000 jobs in January, but economists were less than expected, but the unemployment rate fell from 4.1% to 4%, breaking forecasts and approaching historic lows. It’s there.
Forecasters surveyed by Dow Jones predicted a 169,000 salary increase in January after 307,000 jumps in December, according to the revised tally. The figures released by the Bureau of Labor Statistics on Friday include daily annual data adjustments, with a total of 100,000 pay levels for November and December.
BLS revised the pace of monthly employment growth in 2024 to an average of 166,000 from a previous estimate of 186,000, reinforcing widespread expectations that last year’s employment was not as robust as previous data suggested. did. During the period covering 2023 and early 2024, the US added 589,000 low pay salaries.
At the same time, the pay for millions of people continues to rise. Bankrate senior economist Mark Hamrick has seen an average hourly revenue rise of 4.1% over the past year thanks to the minimum wage hikes that came into effect in 21 states and dozens of municipalities last month. The Institute for Economic Policy estimated that over 9.2 million workers in December were seeing a total increase of $5.7 billion in January.
“Wage growth has continued to outperform recent inflation and picked up a bit,” Hamrick said in a statement Friday. “The still solid job market provides a solid foundation for Americans to focus on their financial goals,” he said.
The US stock market had little change on Friday morning, shortly after BLS data.
“Today’s employment report likely cut interest rates in March,” Sheemasher, chief global strategist in key asset management, said in a statement Friday regarding the next level of interest rates in the Federal Reserve. He said he mentioned the next move. “Aside from the slightly disappointing pay numbers in the headline, the wider picture is still one of the labor market resilience and sustained wage pressures.”
How President Donald Trump’s agenda affects the economy is one of the wild cards investors and feeders have been monitoring similarly.
Shah said some of his policies could “have a major impact on both labour market photography and inflation outlook,” and “for now there are all kinds of reasons to hold off interest rates.” He added. Trump himself recently said the Fed’s launch last week to hold stable fees was wise enough after denounced the central bank hours after that decision.
Several metrics, such as the share of people leaving their employers, indicate slower movements in the job market as employers are never thinking about staffing for ship jumps again. However, other studies have shown Trump is optimistic that he will boost his business through new and extended tax cuts and deregulation that could encourage more jobs.
“The employment intentions are fully raised,” said Eric Wallerstein, chief market strategist at Yardeni Research Consultancy. However, he agreed that consumers barely want to see lower borrowing rates put pressure on them right away from their credit card and car loan bills.
While greater certainty around the road ahead of interest rates generally supports business growth, Trump’s recent tariff movement has rattled the market. Some Wall Street analysts have shown that if he starts to fully implement them, he will correct his growth estimates, which may be eliciting promised retaliation from the target country .
In a previous research notes in this week’s BLS report, EY’s chief economist Gregory Dako said that US domestic production could be contracted by 1.5% this year, with inflation rising 0.4 percentage points. Trump collection.
“The growing uncertainty in trade policy, despite the rhetoric of the pro-government, increases financial market volatility and puts a burden on the private sector,” writes Dako.