Fed Chair Powell says the job market is still strong. Here’s what to know about the numbers
CNN
On Friday, the Bureau of Labor Statistics will deliver the first jobs report for 2024, and it’s expected to underscore the strength of the US economy despite 11 rate hikes from the Federal Reserve.
On Friday, the Bureau of Labor Statistics will deliver the first jobs report for 2024, and it’s expected to underscore the strength of the US economy despite 11 rate hikes from the Federal Reserve. The labor market snapshot comes just days after Fed Chair Jerome Powell said he’s encouraged about the healthy economy and the downward trajectory of inflation, but cautioned that “we still have a ways to go” before declaring victory on the proverbial soft landing (bringing down inflation without raising unemployment levels). Economists believe the labor market definitely still has enough fuel in the tank to continue on that soft landing path: They’re forecasting a monthly gain of 176,500 jobs and for the unemployment rate to tick higher to 3.8% from 3.7% (but staying under 4% for the 24th consecutive month), according to FactSet consensus estimates. Still, between Thursday and Friday, there is plenty of labor market data to unpack, more noise than usual to cut through and greater chances for volatility. January is typically a big month for job losses, with seasonal workers being let go after the holidays and other companies tightening their belts at the outset of the calendar year. That can make the January jobs report among the trickiest to forecast, said Sarah House, a senior economist with Wells Fargo.
