Mornings with Maria panelists react to December's better-than-expected jobs report and detail the expected impact on the labor market and the U.S. economy.
Number of Americans applying unemployment allowance The labor market unexpectedly fell to a 16-month low last week, evidence that the labor market remains resilient in the face of high interest rates and inflation.
announced numbers Thursday The number of new claims for the week ending Jan. 13 fell by 16,000 to 187,000, lower than the pre-pandemic 2019 average of 218,000, the Labor Department said. This is the lowest level of unemployment insurance claims since September 2022.
The number of continuing claims filed by Americans who continue to receive unemployment benefits also fell to 1.8 million in the week ending January 6, down 26,000 from the previous week.
The number of well-paying jobs is decreasing
A job fair sign is seen on Fifth Avenue in New York City on September 3, 2021. (Reuters/Andrew Kelly/Reuters Photo)
“The labor market continues to show signs of resilience despite the rapid rate hikes that the Fed began nearly two years ago,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. Stated.
Stronger-than-expected data can have a huge impact on the world. federal reserveIt is trying to cool the economy and labor market through a series of aggressive interest rate hikes. Policymakers have indicated in recent weeks that interest rate hikes may end, but have given no guidance on when they might start easing monetary policy.
Experts say central bankers are unlikely to cut interest rates until there is further evidence that the labor market is softening.
US economy adds 216,000 jobs in December, more than expected
Participants at the Healthcare Career Fair held at Cape Fear Community College on February 28, 2023 in Wilmington, North Carolina. (Photographer: Alison Joyce/Bloomberg/Getty Images)
“This week's story continues to be about strong economic data and the possibility that rate cuts will be frozen for some time,” said Chris Larkin, managing director of trading and investments at Morgan Stanley's E*TRADE. “Until we start to see consistently weak numbers, especially in the labor market, the Fed is likely to maintain its high stance for an extended period of time.”
The labor market has remained historically tight over the past year, contrary to economists' predictions of an economic slowdown. Economists say the economy is starting to normalize after last year's breakneck pace, but it is far from a breakthrough.
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Earlier in the month, the Labor Department reported that economic growth added 216,000 jobs in December, noting a gradual slowdown in the labor market.
