WASHINGTON – Job growth in the United States moderated in January following annual government revisions that painted a less robust picture of the labour market in 2024 than initially estimated.
The Bureau of Labour Statistics (BLS) reported on February 7 that non-farm payrolls increased by 143,000 in January, following a revised gain of 307,000 in December. The agency also noted that despite wildfires in Los Angeles and severe winter weather elsewhere, these events had “no discernible effect” on employment figures.
The unemployment rate stood at 4%, though the BLS cautioned that updated population estimates at the start of the year made the figure incomparable to previous months.
Annual benchmark revisions indicated that job growth averaged 166,000 per month in 2024, down from the previously reported 186,000. These updates, derived from unemployment insurance tax records and business adjustments, reflect a gradually moderating yet resilient labour market that continues to support economic growth without fueling inflation.
The revised employment data aligns with the Federal Reserve’s cautious approach to interest rate policy. With inflation easing slowly and economic uncertainty surrounding President Donald Trump’s policy agenda, Fed officials have signaled they are in no rush to implement further rate cuts after three reductions in 2024. Chairman Jerome Powell recently described the job market as “pretty stable,” while reiterating concerns over any excessive cooling.
Following the report, stock futures, Treasury yields, and the US dollar saw fluctuations. Meanwhile, hourly wages climbed by 0.5%, signaling continued strength in wage growth despite the overall slowdown in hiring.