MNI BRIEF: US Unemployment Rate Unexpectedly Dips To 4.0%
MNI (WASHINGTON) - U.S. businesses created fewer jobs in January than the previous month and market forecasts, but the unemployment rate unexpectedly dipped a tenth to 4.011%, reinforcing the Federal Reserve's propensity to keep rates on hold for now. Payrolls rose by 143,000 last month, compared to median estimates for a 180,000 gain, but the previous two months were revised up by 100,000.
Comprehensive revisions to data were somewhat less negative than expected. The total nonfarm employment level for March 2024 was revised downward by 598,000, not as much as market forecasts for around 700,000 and lower than the preliminary estimate of 818,000.
California wildfires and severe winter weather elsewhere had "no discernible effect" on the national figures, the Bureau of Labor Statistics said, though analysts believe there were some impacts. Average hourly earnings gains accelerated two-tenths to 0.5% in January, more than expected, and were up 4.1% on the year. (See: MNI INTERVIEW: Fed Likely On Hold For Most Of 2025-Kroszner)