#USJobsDrop
The U.S. labor market exhibited signs of deceleration in January 2025, with employers adding 143,000 jobs, falling short of the anticipated 170,000. Despite this slowdown, the unemployment rate edged down to 4.0% from the previous 4.1%.
The Bureau of Labor Statistics also revised employment data for the 12 months ending in March 2024, indicating that 598,000 fewer jobs were created than previously reported. This adjustment, while significant, was less severe than the 818,000 reduction estimated in August.
Wage growth remained robust, with average hourly earnings increasing by 0.5% in January, contributing to a 4.1% rise over the past year.
Analysts suggest that the Federal Reserve is likely to maintain its current interest rate policy in the near term, given the labor market's resilience and ongoing inflation concerns.