The U.S. Labor Market Stabilizes, Providing the Fed with Room to Hold Steady

February 11 — Foreign media analysis of the U.S. January nonfarm payroll report noted that employment growth accelerated last month, with 130,000 jobs added — far exceeding expectations — while the unemployment rate fell to 4.3%. This signals a stabilizing labor market, which could lead the Federal Reserve to keep interest rates steady for now as policymakers monitor inflation. Part of the better-than-expected job growth stems from seasonal sectors like retail and delivery, which hired fewer holiday workers last year. January typically sees the highest concentration of holiday-related layoffs. Given sluggish seasonal hiring, layoffs were likely smaller than usual, giving a boost to job growth. Even with the January payroll gain, the labor market remains lukewarm, struggling even amid solid economic growth. Anxiety about jobs and high inflation has eroded Americans’ satisfaction with the Trump administration’s economic policies. Source: FX678