January jobs report: Unemployment rate falls to 4%, wages rise more than forecast as US labor market remains resilient to start 2025
Published On Feb 7, 2025, 9:44 AM
The January jobs report revealed a decrease in the unemployment rate to 4%, alongside a higher-than-anticipated wage growth of 4.1% year-over-year. While job creation for January was lower than expected at 143,000 new jobs (versus an anticipated 170,000), prior months' figures were revised upwards, indicating a stronger labor market than previously thought. This news suggests ongoing resilience in the labor market, which may influence the Federal Reserve's decision on interest rates as they are not expected to lower rates anytime soon. The stable job market along with wage growth reinforces consumer spending predictions, beneficial for economic growth going into 2025.
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The report suggests continued resilience in the U.S. labor market, with meaningful wage growth that could lead to improved consumer spending. This might positively affect sectors reliant on consumer spending and overall market stability.
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