The U.S. economy added 143,000 jobs in January, falling short of expectations (169,000) and marking a slowdown from December’s revised 307,000 gain. Despite weaker job growth, the unemployment rate ticked down to 4%, with labor force participation rising slightly to 62.6%. Job gains were led by health care (44,000), retail (34,000), and government (32,000), while mining-related industries lost 8,000 jobs. The BLS also made significant benchmark revisions, lowering total job growth for the 12 months through March 2024 by 589,000. However, household survey adjustments showed 2.23 million more people at work due to population and immigration changes.
Wages outpaced expectations, with average hourly earnings rising 0.5% for the month and 4.1% year-over-year (above forecasts of 0.3% and 3.7%). Markets remained steady, with investors skeptical that this report would push the Federal Reserve toward early rate cuts. While some expected California wildfires to impact hiring, the BLS found no significant effect. Economists are now watching how these trends might influence future Fed decisions.
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