TechFlow news — On January 9, data released Friday by the U.S. Bureau of Labor Statistics showed that nonfarm payrolls increased by 50,000 in December, below economists' expectations of 60,000. The unemployment rate fell to 4.4%, down from 4.6% in November. After government shutdowns severely distorted employment figures for October and November, the latest report provides the most complete picture of the U.S. labor market in months. November’s job growth was revised downward to 56,000 from an initial reading of 64,000.
The data further confirm signs of a weakening labor market, hit by federal workforce reductions and slowing hiring in the private sector. The Federal Reserve has cut borrowing costs at each of its past three meetings, bringing its benchmark target range to a three-year low of 3.5–3.75%. In December, Fed Chair Powell suggested a high bar for further rate cuts, stating current borrowing costs were already “in a good place.”
However, the weak December figures could complicate the Fed's rationale for pausing its rate-cutting cycle at its next meeting later this month. The central bank has also raised concerns about the accuracy of recent BLS data, with Powell indicating the U.S. economy is adding 60,000 fewer jobs per month than reported in official employment surveys. (Jinshi)
