ACTV - January Employment: Strong Number Mixed Bag No Rate Cuts
2024-02-02 14:17:59 ET
Summary
- January job creation exceeded expectations with 353,000 jobs added.
- The labor shortage is growing as the number of job openings outpaces the number of unemployed.
- Average hourly earnings and average hours worked are heading in two opposite directions.
January Jobs Report
Earlier today, the Bureau of Labor Statistics blew the lid off of everyone’s expectations by announcing that the economy had added 353,000 jobs in the month of January. The unemployment rate remained at 3.7%, which is below the Fed’s 2024 and long-term targets. With revisions in November and December’s data, the three-month average for job creation jumped to over 289,000 per month, which was well ahead of the average employment gains prior to the pandemic. While the January jobs report will not assist the rate cut narrative, there's considerable mixed messaging in the details that will require future reports to sort out....
January Employment: Strong Number, Mixed Bag, No Rate Cuts