The US Nonfarm Payrolls (NFP) for January came in at 143,000, well below the market‑expected 170,000 .The unemployment rate slipped to 4% from 4.1%, while the labor‑force participation edged up to 62.6%. Wage pressure stayed strong, with Average Hourly Earnings rising 4.1% YoY, beating the 3.8% forecast .
Key take‑aways:
- Weaker job growth suggests the labor market is cooling, which could ease Fed pressure on interest rates.
- Lower unemployment and a modest rise in participation indicate that workers are still finding jobs, just at a slower pace.
- Higher wage growth may keep inflation concerns alive, even as hiring slows.
Overall, the mixed signals point to a “soft‑landing” scenario rather than a sharp downturn.