U.S. January Non-Farm Payrolls Data Far Exceeds Expectations, Signaling Improvement in the Labor Market

February 11 Financial Times (FT) reported on January’s non-farm payrolls (NFP) data, noting the U.S. economy added 130,000 new jobs—far exceeding market expectations. The figure signals an improvement in the U.S. labor market, following a string of weak prior readings. U.S. Treasury yields surged as investors pared back expectations for interest rate cuts this year. The two-year Treasury yield—highly sensitive to monetary policy—jumped to 3.55%, hitting a one-week high. The unemployment rate edged down to 4.3%. After years of robust growth, U.S. hiring slowed sharply in 2025. A batch of new reports released last week highlighted rising layoffs and falling job openings, suggesting the labor market could deteriorate further. However, the latest NFP data will reinforce Federal Reserve Chair Jerome Powell’s claim that the labor market is showing signs of “stabilization.” (Source: FXStreet)