The last remnants of the Biden administration reared their ugly head in the month of January.
The United States added fewer jobs than anticipated in January as the Federal Reserve waits to see labor market and inflation data before deciding on whether or not to adjust interest rates, Fox Business reported.
However, the unemployment rate was at 4 percent, which was lower than what was anticipated by economists.
“The number of jobs added in the prior two months were both revised, with job creation in November revised up by 49,000 from a gain of 212,000 to 261,000, while December was revised up by 51,000 from a gain of 256,000 to 307,000. Taken together, 100,000 more jobs were created in those two months than previously reported,” the report said.
The private sector was expected to add 141,000 jobs but only added 111,000, according to government data.
There was some good news as wages grew half a percent from the previous month and 4.1 percent from the same time a year prior. The manufacturing industry added 3,000 jobs which was an improvement over the 2,000 jobs it was expected to lose.
The retail industry added 34,300 jobs in January, while general merchandise retailers added 31,200 jobs and furniture retailers added 5,300.
Electronics and appliance retailers saw a decrease in jobs of 7,000.
“Social assistance added 22,300 jobs, led by individual and family services (+20,100) with gains also occurring in community food and housing, emergency and other relief services (+4,400). The sector grew by an average of 20,000 jobs a month last year,” the report said.
“The mining, quarrying and oil and gas extraction industry lost 7,700 jobs in January, with losses concentrated in mining support activities. The sector experienced little net change in 2024,” it said.
Those participating in the workforce stayed steady at 62.6% after were calculated for population controls made by the Bureau of Labor Statistics (BLS).
At a fed meeting last week, it was decided not to cut interest rates for a fourth straight quarter.
The Chairman of the Federal Reserve, Jerome Powell, said that a “wide set of indicators suggest that conditions in the labor market are broadly in balance” and that even as inflation remained elevated, the market was not a significant source of those pressures.
“A lower-than-expected January payrolls number was more than offset by upward revisions to November and December’s totals and a downtick in the unemployment rate,” Morgan Stanley Wealth Management chief economic strategist Ellen Zentner said. “Those who’d hoped for a soft report that would nudge the Fed back into rate-cutting mode didn’t get it.”
“In general, labor demand last year was softer than originally reported but that trend temporarily reversed in November and December. An unemployment rate at 4% is considered very low, giving the Fed reason to keep the fed funds unchanged in the near term,” LPL Financial chief economist Jeffrey Roach said as he said the report “may be considered a Goldilocks report — not too hot and not too cold.”
But more jobs are on the way.
In December, Trump announced a $100 billion investment in the United States by SoftBank.
Speaking from Mar-a-Lago, the 47th president spoke alongside SoftBank Group CEO Masayoshi Son, where they announced SoftBank’s plans to invest $100 billion in the United States over the next four years.
Masayoshi Son said his “confidence level” in the US economy has “tremendously increased with [Trump’s] victory,” adding, “Because of that – I am committing $100 billion and 100,000 jobs into the United States. This is double of last time… because President Trump is a double-down president.”
Trump said the investment was evidence of “monumental confidence in America’s future.” He playfully encouraged Son to invest $200 billion. Son chuckled and said that he would try.
Trump called Son “one of the most accomplished business leaders of our time,” Reuters reported.
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