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January 2025 Labor Market Exhibited Signs of Moderation.

January's labor market's performance reflects a cooling trend, with job growth slowing compared to previous months. Factors such as adverse weather conditions, including wildfires and snowstorms, may have contributed to this deceleration. Additionally, the Federal Reserve's decision to pause interest rate cuts indicates a cautious approach in response to evolving economic indicators. However, potential challenges loom, including the impact of new tariffs and immigration policies under the current administration, which could influence future labor market dynamics.

December 2024 Capped a Year of Steady Recovery.

The U.S. labor market closed 2024 on a robust note, with payrolls increasing by 256,000 in December, significantly outpacing economists’ forecasts of 153,000 jobs. The unemployment rate edged down to 4.1% from 4.2%, marking the 48th consecutive month of employment growth and tying the second-longest period of expansion on record. Wage growth continued steadily, contributing to a broader picture of economic resilience amid global uncertainties and upcoming policy transitions.

U.S. Economy Displayed Resilience in November.

The November jobs report revealed robust hiring, with the economy adding 227,000 jobs, significantly higher than October’s revised total of 36,000. This sharp increase surpassed expectations and highlighted strong growth in sectors such as healthcare and leisure, demonstrating a rebound in economic activity.

Job Growth for October, LOWEST Since December 2020.

Last Friday’s BLS report saw a significant drop in job creation across the U.S., with 12,000 jobs being added, the lowest since December 2020! While the unemployment rate held steady at 4.1%, this stability misrepresented underlying shifts in the labor force and time will tell if this is a true stabilization.