U.S. January Non-Farm Payroll Data Far Exceeds Expectations, Labor Market Shows Signs of Improvement

Odaily News The Financial Times commented on the non-farm payroll report, pointing out that the U.S. economy added 130,000 new jobs in January, far exceeding market expectations, indicating signs of improvement in the U.S. labor market after a series of weak data. U.S. Treasury yields jumped in response as investors scaled back their expectations for interest rate cuts this year. The two-year Treasury yield, which is particularly sensitive to monetary policy, surged to 3.55%, hitting a one-week high. The unemployment rate edged down to 4.3%. After years of strong growth, U.S. hiring activity slowed sharply in 2025. A series of new reports released last week showed that the labor market could deteriorate further as layoffs increased and job openings decreased. However, the latest data will help reinforce Federal Reserve Chairman Powell's argument that the labor market is showing "signs of stabilization." (Jin10)