Economic Data Report
Very Strong Jobs Report to Start the Year
- 353,000 new jobs added in January 2024
- Expectations were for 185,000
- Prior months revised up
- Unemployment steady at 3.7%
- Strong employment may delay Fed rate cuts
Jobs – Strong Start to 2024
The January employment report came in much stronger than expected with 353,000 jobs added to payrolls. Consensus estimates were for 185,000 new jobs. Just as importantly, prior months were revised upward. The average monthly increase for the fourth quarter of 2023 is now estimated at 203,000, rather than 165,000. Unemployment held at 3.7%. Hourly earnings increased 0.6% in January, double economists’ consensus forecast. Employment continues to be one of the strongest elements of this expanding economy. The strength of this report, and its implications for estimates of future growth and inflation, may motivate a delay in any interest rate cuts by the Federal Reserve until later this year.
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This information is for informational purposes only and does not constitute investment advice.
Sources:
GDP – Bureau of Economic Analysis
Employment & Inflation – Bureau of Labor Statistics
Interest Rates – Federal Reserve
P/E S&P 500 – multpl.com
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