FEBRUARY 10, 2025 – NEW JOBS FALL IN JANUARY
There were 143,000 new jobs added to the US economy in January, down from 307,000 created in December and below expectations for 169,000 new positions. The unemployment rate was down to 4 percent. Average hourly wages rose 0.5 percent for the month, and were up 4.2 percent from a year ago.
The Labor Department did make some revisions to the data collected on job creation during the last 12 months, and adjusted the total down by some 589,000, however the data for November and December were adjusted up, offsetting the lower January number. This relatively strong employment report is not providing enough weakness to push the Fed to adjust rates.
The Fed is watching both employment and inflation numbers to guide monetary policy. The officials are taking a cautious approach, preferring to keep rates high longer, rather than cut and then be forced to raise them again. Markets expect the Fed to hold rates until June, when there is a fifty percent chance of a rate decrease.