The first job report under the new Trump administration has been delivered weaker than expected.
The US economy added 143,000 jobs in January, which was much less than the 169,000 predictions by economists.
But there was a silver lining – the unemployment percentage fell slightly to 4 percent of 4.1 percent in December. Investors had expected it to remain unchanged.
Economists expected that non-agricultural wage lists would grow by 169,000 from December to January, with the count weighed by the devastating forest fires in Los Angeles and bitter cold weather in many parts of the US.
In fact, the Bureau or Labor Statistics said that these factors had no perceptible effect on the count. '
It comes after hiring unexpectedly jumped in December. New revised figures on Friday revealed that the economy added 307,000 jobs in December, against a earlier figure of 256,000.
Although this indicated the power in the economy, it also sent the stock market over the fear that inflation turned out to be sticky.
Friday's report is the first number of jobs since President Trump took office on January 20, with plans to stimulate growth, reduce taxes and impose radical rates on important trading partners.
The health of the labor market is an important consideration for the Federal Reserve, and investors will now look at the report for drawing about which movement the central bank can make during its next meeting in March.
“Stocks fell on the back of a strong job report in January, but today's labor report seems more mixed,” said Etoro US Investment Analyst Bret Kenwell.
'On the positive side, the unemployment rate lower to 4 percent and the print of last month was even more revised.
“The main figure of this month, however, missed expectations, while the average hour trip in the estimates of economists came before the estimates of economists.”
Strong wage growth is good for employees and must be considered a positive for consumer expenditure.
But Wall Street has kept a close eye on this meter in recent years, Kenwell added, because investors are concerned that too strong wage growth could push inflation higher.
Julia Pollak, chief economist of Ziprecruiter, said that the weaker than expected report 'expectations of stabilization' for the labor market defied.
'Looking ahead, the labor market remains on a uncertainty. A stronger consumer maintains parts of the economy, but high interest rates continue to drag on investments and production, “she said.
The American economy added 143,000 jobs in January, which was much less than the 169,000 predictions by economists
The majority of job growth for January was concentrated in health care, which 44,000 roles, and retail, which added 34,000 roles.
The government also added 32,000 jobs in January.
It comes as the Ministry of Government Efficiency (Doge) of Trump and Elon Musk (Doge) try to reduce the federal workforce as part of their guideline to save $ 2 trillion in federal expenses.
Federal employees have offered to include Trump a 'buyout' deal, which gives employees the option to resign from their current position, but will remain on the payroll until 30 September with all the benefits.
So far, around 40,000 employees have accepted the offer that has been extended until Monday.
