The US economy added 143,000 jobs in January
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The US economy added jobs at a slower pace than expected in January as the Federal Reserve remains in a holding pattern of interest rate cuts to assess labor markets and inflation data.
The Labor Bureau on Friday reported by the employer. 143,000 jobs added In January, below estimates from LSEG economists.
Unemployment rate It came in at 4%, which is lower than the expectations of economists.
Both of the number of jobs added over the past two months have been revised, with job creation in November increasing 49,000 from 212,000 to 261,000 profits. Meanwhile, December saw a 51,000 increase from profits of 256,000 to 307,000. To sum up, 100,000 jobs have been created over the last two months than previously reported.
The Fed’s preferred inflation calculations showed price growth picked up in December
The January employment report was cooler than expected. (Getty Images/Alison Joyce via Getty Images/Bloomberg)
Private sector payroll added 111,000 jobs in January, down below the estimated 141,000 by LSEG economists.
Wage growth was stronger than expected, with average revenues increasing by 0.5% from the previous month and 4.1% from a year ago. Both of these outperform LSEG economists’ estimates of 0.3% monthly growth and 3.8% year-on-year.
Manufacturing sector In January, employment rose to just 3,000 jobs. This exceeded economists’ expectations that the sector would eliminate 2,000 jobs that month.
Healthcare Industry Employment in hospitals (+13,900), nursing and residential care facilities (+13,200), and home health services (+10,600) added 43,700 jobs in January. The sector was below the average employment of 57,000 people a month in 2024.
Retail stores added Last month, electronics and appliance retailers fell (-7,000) with 34,300 jobs gaining notable employment in general goods retailers (+31,200) and furniture and furniture retailers (+5,300) . Overall, the retail sector had few net employment changes in 2024.
The government added 32,000 jobs in January. This is in line with the average monthly profit of 38,000 in 2024.
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Social assistance added 22,300 jobs led by Individual and Family Services (+20,100), and benefits also occurred in community food and housing, emergency services and other relief services (+4,400). The sector grew an average of 20,000 jobs a month last year.
Mining, quarrying, and Oil and gas The extraction industry lost 7,700 jobs in January, with the losses focused on mining support efforts. The sector experienced little net change in 2024.
Labor participation rates remained unchanged at 62.6% after considering annual adjustments in population management made by the Bureau of Labor Statistics (BLS).
The number of people considered long-term unemployed, defined as unemployed for more than 27 weeks, was not changed to 1.4 million in January. Long-term unemployed accounted for 21.1% of all unemployed people.
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The number of workers employed part-time for financial reasons was largely unchanged to 4.5 million. These workers would have wanted full-time jobs, but due to reduced time, they either worked part-time or were unable to find full-time jobs.
Multiple employers increased 286,000 in January, accounting for 5.3% of the total workforce, with little change last year.
The January employment report is as follows: Federal Reserve System Amid uncertainty about inflation and labor market health, it opposed the fourth consecutive interest rate cut at last week’s meeting.
The Federal Reserve holds interest rates steady amid inflation uncertainty
Federal Reserve Chairman Jerome Powell At a post-meeting press conference, “a wide range of indicators suggesting that labor market conditions are broadly balanced,” and inflation remained somewhat higher, but the labor market is a source of significant inflationary pressure. He said that wasn’t.
“The January salary figures, lower than January, were offset by an upward revision to the November and December totals and a lower unemployment rate,” said Erenzentner, chief economic strategist at Morgan Stanley Wealth Management. states. “People who wanted a soft report that would bring the Fed back to rate cut mode didn’t get it.”
Federal Reserve Chairman Jerome Powell last week said the labor market was not the source of significant inflationary pressure at the time. (Li Jie/Xinhua via Getty Images/Getty Images)
LPL Financial Chief Economist Jeffrey Roach said the January employment report “could be considered a Goldilocks report. It’s not too hot, not too cold.”
“In general, labor demand last year was softer than initially reported, but that trend was temporarily reversed in November and December, with Roach added.
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The Fed’s next meeting is scheduled for March 18-19, with the market responding to its January employment report by strengthening expectations that the central bank would not change fees.
The odds of benchmark federal funding rose to 91.5% in the range of 4.25%, from 4.5% on Friday, from 4.5% to 4.5%, according to the CME FedWatch tool.