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The U.S. economy created 143,000 jobs in January, with no forecasts, but solid gains from unemployment and incomes declined, underscoring the strength of the U.S. labor market.
Although January’s figures were expected to be 170,000 in a Reuters poll, the Bureau of Labor Statistics also set the number of bumpers in December from 256,000 to 307,000.
Economists and businessmen stressed that the unemployment rate fell to 4% in January, down from 4.1% last month, which they said strengthened the Fed’s case to reduce interest rates.
Both U.S. stocks and government bonds are under pressure after Friday’s report.
The two-year fiscal yield tracked interest rate expectations and was inversely proportional, up 0.07 percentage points to 4.28%, while the 10-year yield increased by 0.06 percentage points to 4.5%.
The S&P 500, the blue chip stock, fell 0.6%, while the technology-heavy Nasdaq Comprehensive shares fell 1%.
Despite pressure from President Donald Trump to reduce borrowing costs, the Fed kept interest rates between 4.25% and 4.5%, and Friday’s employment figures were just behind 4.25% to 4.5%.
Diane Swonk, chief economist at KPMG US, said unemployment has dropped and increased participation in the labor market, “the justification for being comfortable for the Fed is the same as the reason for being more comfortable,” to reduce the price of the Slow down this year’s slowdown.
Over the past 12 months, average hourly income has also increased by 4.1%, a sign of continued health in the U.S. labor market.
The market expects the next Fed tax rate to be lowered in July, and by the end of the year, another Fed will have a 60% chance, down from 70% before the report by Jobs.
“When we take a step back and look at the trend, it still points to a very healthy labor market,” said Sarah House, senior economist at Wells Fargo. “This keeps the Fed biased for the foreseeable future.” .”
A breakdown of labor market figures suggests that most people who found jobs in the United States last year were foreign-born – accounting for about 2.7 million jobs.
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“If we see strong job growth, it’s due to the growth of the immigrant population – I think it’s worth considering the intensity of repression that never authorized immigrants.”
The version also shows that the earlier revisions in 2024 are better than people are worried about.
“Many analysts, including me, hope that the revision will bring the pace of job growth over the past nine months of 2024 on a weaker trajectory,” said Omair Sharif, president of inflation insights at the research firm. “The obvious results are more than in today’s data,” said Omair Sharif, president of inflation insights. The results that are worried about are much better. ”
