NEWSLETTER
The US economy added a count of new jobs smaller than expected last month, but a strong jump in salary growth and reviews linked to population changes and immigration creates a noisy report that might not indicate a broader strength In the labor market.
The Labor Statistics Office said that 143,000 new jobs were created last month, losing the prognosis of 169,000 Wall Street and reaching less than half of the December reading of December 307,000.
Other reviews linked to the new BLS methodology raised readings for November at 49,000 to 261,000, adding around 100,000 new jobs to the last two -month headlines.
However, average average profits, however, in January, increasing 0.5% compared to the previous month, the highest gain since March 2022, and increased 4.1% annually. Both figures arrived far ahead of the Wall Street forecasts.
However, the main unemployment rate fell to 4%, while the labor force participation rate increased 0.1 percentage points to 62.6%.
“The first 2025 job report has had expectations,” said Steve Rick, a trustage chief economist. “However, the unemployment rate remains stable, around 4.1%.
“We do not expect this number to change dramatically in the coming months, since the Fed has moved to keep cuts of interest rates to minimally impact the labor market,” he added. “Despite the pause last week, we continue to project tours of rates one to two in the second half of the year to ensure that the economy is stable.”
The US stocks changed shortly after data release, with futures linked to the S&P 500 that indicate a decrease in the 3 -point opening bell and the Nasdaq called 5 points lower. The Dow was last called 10 higher points.
Benchmark The 10 -year treasure note increased 4 basic points to 4,485% after data release, while rate notes sensitive to the rate increased 3 basic points to 4,254%.
The US dollar index, which tracks the green back against a basket of six global currencies, marked 0.1% higher by 107,801.
“Today's employment report probably keeps the Fed on hold for probably one more meeting,” said Bryce Doty, senior portfolio manager of SIT Investment Associates.
“While jobs were not exceptional in any way, a lower unemployment rate and a strong increase in salary growth means that the labor market is still healthy,” he added. “Wait for yields to be referred as investors digest the details (but) we doubt that this report is strong enough to push yields to the recent maximum.”
Related: The job report can be hesitation catalyst
Meanwhile, the Fedwatch of CME Group, now nailed the probabilities of a Fed rate of a quarter point in June in just 44.8%, below around 46% before the release of the job report. Merchants have few possibilities of a reduction in March or May.
More economic analysis:
- 12 things they should know about Trump's new rates
- Jobs Reports to restore Fed Fed interest rates forecasts
- Inflation Report Relieves Fed Interest Rate Ready Bets in 2025
Earlier this week, the ADP payroll processing group reported a stronger private sector hiring than expected, as well as solid salary growth for workstyles and employment exchangers, in its January employment report.
Meanwhile, Challenger Gray's report was closely observed on corporate dismissals, indicated the lowest number of employment cuts in January in three years.
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