The unemployment rate was flat in January, but the number of jobs increased. (iStock)
Nonfarm payrolls increased by 353,000 in January, according to the U.S. Bureau of Labor Statistics’ monthly report. Overview of employment situation.
The unemployment rate remained unchanged from last month at 3.7%. This is the third consecutive month that the unemployment rate has remained flat. The number of unemployed people remained little changed at 6.1 million, according to BLS data.
“The U.S. economy added 353,000 jobs in January, almost double the consensus estimate,” said Dawit Kebede, senior economist at Credit Union of America. “Average hourly wages increased by 4.5% year-on-year, indicating that positive growth in real wages supports personal consumption and economic growth.”
Industries with the biggest job gains included business services, health care, retail, and social assistance. The professional and business services industry added 74,000 jobs in January, up significantly from the 2023 average of 14,000 job gains.
Healthcare employment also increased by 70,000, a healthy increase from the 58,000 monthly increase in 2023. The biggest job additions were in outpatient services, with 33,000 jobs added, followed by hospitals, which added 20,000 jobs, and nursing homes, which added 17,000 jobs.
Employment in some industries was on the decline. This was mainly limited to the mining, oil and quarrying industries.
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The Fed will keep interest rates unchanged, but the outlook for the timing of rate cuts remains uncertain
The economy is recovering faster than expected
Despite persistent fears of a recession in 2023, the U.S. economy again exceeded expectations in the fourth quarter of this year. Real gross domestic product (GDP) increased by 3.3% in the fourth quarter of 2023. The Bureau of Economic Analysis reported.
Although this was lower than the 4.9% GDP growth rate in the third quarter, it is on track to keep the economy out of recession.
“These trends [job growth] “This is consistent with the fourth-quarter GDP report, which showed that the economy gained momentum from the end of the year through January,” said Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. “These reports contradict the downward trend in employment.” Opening rate and recruitment rate. And this news certainly goes against the flurry of layoff announcements at many companies in recent weeks. ”
There were layoffs in certain industries at the beginning of the year, but this is not a sign that job growth is slowing, but is primarily a cost-cutting move by large companies.
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Inflation is slowing, but prices remain high
In addition to employment growth, inflation has slowed significantly. The Fed is still holding off on cutting interest rates, but they are still expected to do so. Multiple interest rate cuts are planned.
“No interest rate changes were announced at the January Fed meeting, giving the Fed further confidence that inflation is on track to its 2% target, consistent with its price stability mandate,” said Daniel, chief economist at Realtor.com. That’s because we’re still searching for it.” Mr. Hale explained.
Although inflation has fallen, prices for almost everything remain high. Overall, prices are up about 17% from pre-pandemic levels. Associated Press reported.
Major markets such as the rental market and real estate market have not yet cooled down. House prices in the United States averaged over $400,000, and in December 2023 he increased by 3.7%. Redfin research states:.
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