Washington: The US labor market cooled in January, with job growth slowing but unemployment ticking down. According to the latest data, employers added 143,000 jobs, falling short of analysts’ expectations of 170,000. However, December’s job growth was revised up to 307,000, reflecting a stronger labor market at the end of last year.
Unemployment Rate Drops Slightly
Despite the slowdown in hiring, the unemployment rate dipped to 4%, down from 4.1% in December. This suggests that the labor market remains resilient despite economic uncertainties and policy shifts.
Federal Reserve Maintains Pause on Interest Rate Cuts
A strong jobs market has supported economic growth, allowing the Federal Reserve to pause interest rate cuts. Policymakers are monitoring the effects of Donald Trump’s fiscal, trade, and immigration policies, which some economists warn could drive inflation.
Extreme Weather Had Little Impact
Although wildfires in Southern California and severe winter storms hit much of the country in January, the Bureau of Labor Statistics reported that these events did not significantly impact employment, working hours, or wages.
Looking Ahead
While job growth slowed, the labor market remains stable. Economists will continue to assess inflation risks, wage growth, and policy changes to determine the next steps for the economy.
