Analysis: U.S. December Nonfarm Payrolls Missed Expectations; Slight Drop in Unemployment Rate Fails to Mask Deteriorating Labor Market Trends
Svmuu News: Data released Friday by the U.S. Bureau of Labor Statistics showed that 50,000 new jobs were created in December, falling short of economists' forecast of 60,000.The unemployment rate fell to 4.4%, down from 4.6% in November. After the November and October figures were severely distorted by the government shutdown, this release provides the most complete picture of the U.S. job market in months.The November job gain was revised down to 56,000 from an initial estimate of 64,000. The latest data further confirms signs of a weakening labor market, which has been impacted by federal government workforce reductions and a slowdown in private-sector hiring. Federal Reserve The Federal Reserve has cut U.S. borrowing costs at its last three meetings, keeping its benchmark target rate range at a three-year low of 3.5–3.75%. Federal Reserve Jerome Powell In December, the Fed signaled that the bar for further rate cuts was high, stating that current borrowing costs were “in a good place.”However, weak December data may complicate the case for the Federal Reserve to pause its rate-cutting cycle at its next meeting later this month. Federal Reserve has also raised concerns about the accuracy of recent Bureau of Labor Statistics data, with Jerome Powell estimating that the U.S. economy adds 60,000 fewer jobs per month than the employment reports claim. (Jinshi)
Source:Odaily · Source Link
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