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

BlockBeats News, February 11th, foreign media's assessment of the non-farm payroll report pointed out that U.S. January non-farm employment growth accelerated, with an addition of 130,000 jobs far exceeding expectations, while the unemployment rate dropped to 4.3%. This is a signal of the stabilization of the labor market, which may allow the Federal Reserve to maintain interest rates unchanged for a period of time while policymakers monitor inflation. Part of the reason for the better-than-expected employment growth is that seasonal, sensitive industries such as retailers and delivery companies hired fewer holiday workers last year.

January is usually the month with the most concentrated holiday-related layoffs. Given the sluggish seasonal hiring, the scale of layoffs may have also correspondingly decreased, thereby boosting employment growth. Despite the increase in January non-farm payrolls, the labor market remains lukewarm, struggling even in the case of strong economic growth. Anxiety over employment and high inflation has weakened Americans' satisfaction with the Trump administration's economic policies. (FX678)