Hiring in the United States explodes in January, contrary to forecasts
The website The US labor market grew in January, with a hiring exceeding all expectations. The American Economy created 517,000 jobsa figure much better than the consensus forecast of 185,000, and which represents an increase in the number of jobs created. a sharp increase from the 260,000 created in December. (upward revised from 223,000), as published by the US Bureau of Labor Statistics.
The website unemployment rateFor its part, fell slightly to 3.4%.against 3.5% the previous month, and is at its lowest level for 53 years.
According to the agency releasing the data, “growth has been broad-based, led by gains in the leisure and hospitality, business services and healthcare sectors.. Employment also increased in public administration, partly reflecting the return of workers after a strike.
Employment in professional and business services increased by 82,000while public employment increased by 74,000 workers. On another side, health care added 58,000 jobs.thanks to an increase in ambulatory care (+30,000), residential and care establishments (+17,000) and hospitals (+11,000).
Employment showed little change over the month in other major industriesincluding mining, quarrying and oil and gas extraction; wholesale trade in information, financial activities and other services.
The website average hourly earnings of all non-agricultural private sector employees rose 10 cents, or 0.3 percent.at $33.03. In the last 12 monthson average, wages increased by 4.4%.
Furthermore, the The labor force participation rate increased slightly to 62.4%.a tenth of a percentage point above the level recorded in December.
For Naeem Aslamchief market analyst at AvaTrade, “the statement was so good that many had to recheck it to make sure there was nothing wrong. The data confirmed that the US labor market is not only strong, but also robust, and that recession fears are unnecessary.“.
“In terms of market reactions, initial reactions have been negative, with traders fearing that the Fed could adopt a more hawkish monetary policy given the strength of the labor market and its inflation target.. However, the reality is that today’s numbers are good for the US economy and that should encourage traders to back riskier assets once the dust settles,” he adds.
Srijan KatyalGlobal Head of Strategy and Business Services at ADSS, notes that “the creation of 517,000 new jobs in January marks the start of a new era of job creation. another month in which the US labor market beat estimates.and dramatically. It underscores the strength of the economy at the moment, but there will certainly be questions about the sustainability of this labor market.”
“Having increased rates by 25 bps, the Fed will take this strong employment data into account for its next hike.. A strong labor market will support the high inflation that the Fed has fought with record interest rate hikes,” he adds.