- The US economy added 143,000 jobs in January, missing the forecast of 169,000.
- Unemployment unexpectedly fell from 4.1% in December to 4%.
- The new jobs report included revisions to past job growth figures.
The US had disappointing job growth in January but a welcome drop in unemployment.
The economy added 143,000 jobs, below the forecast of 169,000. However, unemployment was expected to be 4.1% again but declined to 4%.
The new jobs report brings in the BLS’ annual revisions to previous job creation figures based on updated data from businesses.
Noah Yosif, chief economist at the American Staffing Association, said earlier this week that “labor market momentum in 2025 will depend on two key trends — lower labor costs for employers and higher confidence among employees.”
Yosif added that “labor costs remain much too high for employers, and this week’s quits numbers show that employees are still not confident in their prospects of finding a new position.” Quits have been fairly steady and low compared to the Great Resignation, data up to December showed.
The next Federal Open Market Committee meeting, at which members will decide what to do with interest rates, is scheduled for mid-March. More economic data will be published before the meeting. Based on CME FedWatch, traders are expecting the central bank to continue holding rates steady as it did in the January meeting.
“With our policy stance significantly less restrictive than it had been, and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Fed chair Jerome Powell said after the January FOMC meeting.
This is a developing story. Please check back for updates.
