"Employers added a healthy 130,000 jobs in January, the Labor Department said this week, as the unemployment rate edged down to 4.3%. The caveat? That announcement came with revisions that showed job creation flatlined over the last year, with only 15,000 jobs being added per month on average. Service sectors like finance and professional services that normally power the creation of high-paying office positions have instead been shedding jobs, perhaps reflecting employers' anticipation of AI-related cost savings."
"By the numbers: On the inflation front, the good news is that consumer prices are up only 2.4% over the last 12 months, per the January Consumer Price Index, and broadly in line with the Federal Reserve's 2% inflation target. That's down from 2.7% in December. Excluding volatile food and energy, CPI is at 2.5%, the lowest since the post-pandemic inflation surge nearly five years ago."
Headlines show healthy employment with 130,000 jobs added in January and unemployment at 4.3%, but revisions indicate annual average monthly job creation of just 15,000. Finance and professional services are shedding higher-paying office positions, possibly due to employers expecting AI-driven cost savings. Job openings have plunged, signaling potential weaker hiring ahead in 2026. Consumer prices rose 2.4% year-over-year in January, down from 2.7%, and core CPI is 2.5%, the lowest since the post-pandemic surge. However, specific essentials are sharply more expensive: home electricity, natural gas, ground beef and coffee show notable price increases. Equity markets remain volatile amid AI profit concerns.
Read at Axios
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