January's job report shows better than expected unemployment rate and a lower than expected nonfarm payrolls.
U.S. job growth restrained by wildfires in California and cold weather across much of the country came in lower than expected. However, unemployment rate did go down lower than expected showing a healthy labor market. The resilience of the labor market is crucial for economic expansion and give Fed room to pause rate cuts.
Total nonfarm payroll employment rose by 143,000 in January, and the unemployment rate edged down to 4.0 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, retail trade, and social assistance. Employment declined in the mining, quarrying, and oil and gas extraction industry.
- Nonfarm payrolls: +143.000 vs +170,000 expected
- Unemployment rate: 4.0% vs 4.1% expected
- Average hourly earnings, month over month: +0.5% vs +0.3% expected
- Average hourly earnings, year over year: 4.1% vs +3.8% expected