U.S. Labor Market Stabilization May Provide Room for Fed to Hold Steady

Odaily News Foreign media commentary on the non-farm payroll report pointed out that U.S. non-farm employment growth accelerated in January, with a surprising addition of 130,000 jobs, while the unemployment rate fell to 4.3%. This is a signal of stabilization in the labor market, which may give the Federal Reserve room to keep interest rates unchanged for a period of time as policymakers monitor inflation. Part of the reason for the better-than-expected job growth is that seasonally sensitive industries such as retailers and delivery companies hired fewer holiday workers than usual last year. January is typically the month with the highest concentration of holiday-related layoffs. Given the subdued seasonal hiring, the scale of layoffs may have also been correspondingly smaller, thereby boosting employment growth. Despite the increase in non-farm payrolls in January, the labor market remains lukewarm, struggling even amid strong economic growth. Anxiety over employment and high inflation has already weakened American public satisfaction with Trump's economic policies. (Jin10)