The latest 'Employment Situation Summary' indicates a shift in the U.S. labor market, with 143,000 jobs added in January, which is below expectations. Economist Lydia Boussour describes the labor market as 'frozen, but robust,' where businesses are cautious about hiring but not laying off employees. The healthcare, retail, and social assistance sectors saw job gains, while mining industries lost jobs. The unemployment rate stands at 4%, with expectations of a potential rise, prompting the Fed to adopt a cautious approach to interest rate adjustments.
Boussour described the labor market as "frozen, but robust," indicating a paradoxical situation where hiring is restrained but layoffs are being avoided.
Business executives continue to rein in hiring but are still holding off on layoffs as they navigate a more uncertain economic and policy environment.
January's job gains were highest in healthcare, retail, and social assistance industries, each adding at least 22,000 jobs, demonstrating sectoral strengths amid overall cautious hiring.
Boussour expects job growth to continue to be below last year's average of 166,000 jobs added per month and believes the unemployment rate may rise to 4.4%.
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