The jobs report reveals unemployment dropped to 4% in January, the lowest since May 2024, signaling a strong labor market.
Job Gains Revised Up
January added 143,000 jobs, but the jobs report revised December’s gains to 307,000. Combined with November’s revisions, 100,000 more jobs were added than initially reported.
Wages Beat Expectations
Wages rose 4.1% year-over-year in the jobs report, beating the 3.8% forecast. Monthly wage growth also jumped to 0.5%, up from 0.3% in December.
Fed Likely to Hold Rates
The strong jobs report pushed the likelihood of the Fed holding rates steady through May to 67%. Rate cuts seem unlikely for now.
Labor Force Participation Rises
The jobs report shows labor force participation edged up to 62.6%, a small but positive sign for the economy.
Expert Insights
Steve Sosnick of Interactive Brokers says the jobs report shows “most people who want jobs have them, and wages are rising.” This keeps the Fed on hold.
Key Takeaways
Unemployment: 4% (7-month low).Wages: Up 4.1%, beating forecasts.Job gains: Revised higher for late 2024.Fed: Likely to hold rates steady.The jobs report confirms a resilient labor market, setting a strong tone for 2025.