The United States Bureau of Labor Statistics released data on Friday showing the nation created only 143,000 jobs in January 2025.
Economists expected 169,000 new positions as per Wall Street Journal predictions.The unemployment rate dipped to 4%, a slight improvement from Decembers 4.1%.
The healthcare, retail, and social assistance sectors saw job increases, while mining, oil, and gas experienced declines.This report marks the first major economic update since Donald Trumps presidency began on January 20.
The number of unemployed individuals decreased to 6.8 million from 6.9 million.Labor force participation rose to 62.6% from 62.5%.
Average hourly earnings now stand at $35.87, up 0.5% from last month and 4.1% from January 2024.
Additionally, the BLS revised job growth figures for November and December 2024.Novembers job additions jumped from 212,000 to 261,000, and Decembers from 256,000 to 307,000.
The GDP growth slowed to 2.3% in Q4 2024 from 3.1% in Q3.United States Job Growth Falls Short in January, Signals Economic Caution.
(Photo Internet reproduction)For the full year, GDP growth was 2.8%, down from 2.9% in 2023.
Inflation rose to 2.9% in December, up from 2.7% in November.
The Federal Reserve maintained interest rates between 4.25% and 4.50%.Economic Outlook and Its Global ImplicationsThese figures suggest a cautious economic outlook.
The job growth shortfall may indicate businesses are holding back on hiring due to economic uncertainties or awaiting policy directions from the new administration.Despite the lower job numbers, wage growth and the drop in unemployment suggest stability or slight improvement in the labor market.
However, with inflation creeping up and GDP growth decelerating, businesses and policymakers remain watchful.This economic data could affect global markets, particularly in regions like Latin America where economic ties with the United States are strong.
Investors and decision-makers will look to future reports for signs of whether this trend is temporary or indicative of a broader slowdown.