Payrolls Increased By 517,000 in January, Much Better Than 187,000 Expected

Tiger Newspress2023-02-03

The employment picture started off 2023 on a stunningly strong note, with nonfarm payrolls posting their strongest gain since July 2022.

Nonfarm payrolls increased by 517,000 for January, above the Dow Jones estimate of 187,000. The unemployment rate fell to 3.4% vs. the estimate for 3.6%.

Dow futures fall over 200 points as hot January jobs number is likely to keep the Fed in hiking mode.

Growth across a multitude of sectors helped propel the massive beat against the estimate.

Leisure and hospitality added 128,000 jobs to lead all sectors. Other significant gainers were professional and business services (82,000), government (74,000) and health care (58,000).

Wages also posted solid gains for the month. Average hourly earnings increased 0.3%, in line with the estimate, and 4.4% from a year ago, 0.1 percentage point higher than expectations.

The surge in job creation comes despite the Federal Reserve's effort to slow the economy and bring down inflation from its highest level since the early 1980s. The Fed has raised its benchmark interest rate eight times since March 2022.

In its latest assessment of the jobs picture, the Fed on Wednesday dropped previous language saying gains have been "robust" and noted only that the "unemployment rate has remained low."

However, Chairman Jerome Powell, in his post-meeting news conference, noted the labor market "remains extremely tight" and is still "out of balance."

Though Fed officials have expressed their intention to keep rates elevated for as long as it takes to bring down inflation, markets are betting the central bank starts cutting before the end of 2023.

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Comments

  • Seah CL
    2023-02-04
    Seah CL
    K
  • miahsattar1972
    2023-02-04
    miahsattar1972
    🇧🇩💓✌️👌😍🤞🤞
  • Bootrade
    2023-02-04
    Bootrade
    Huge surprise in payroll and unemployment rate which is uncalled of. We might see a downturn until CPI data on 14th Feb. Federal Reserve committee members speech next week. NFP data has shown federal reserve have more room for rate hike if inflation data still persist we may see same scenario in 2022. DXY raising due to strong job numbers and wages not pretty in the short run. Taken call option profit. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco DB US Dollar Index Bullish Fund(UUP)$ $Tesla Motors(TSLA)$ 
    • BootradeReplyBootrade
      Federal Reserve has mention in every meeting they wants to hit 2% inflation rate overtime. Current inflation rate is at 5.7%, its quite a long way.
    • Bootrade
      Doubt rally at the moment as investors are awaiting for Fed Powell speech tomorrow to make the move. Based on NFP report federal reserve have to do more on rate hike as labour market is strong.
    • Globalrisk.fund
      Rally on the way before months end ?
    • blankblank
      K
    • Ais18castle
      surprise
  • June_C
    2023-02-04
    June_C
    Great
  • KSR
    2023-02-04
    KSR
    Thee Best news
  • KSR
    2023-02-04
    KSR
    👍
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