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US Job Market Starts Strong This Year... Will Fed's 'Cautious Rate Cut' Gain Momentum?
Summary
- The US job market has started 2025 strongly, which is expected to bolster the Fed's cautious stance on rate cuts.
- Non-farm payrolls increased by 183,000 in January, exceeding expert forecasts.
- While the service sector led hiring, the manufacturing sector saw a decline in jobs.
Service Sector Leads Hiring, Manufacturing Sees Job Decline
The US job market has started 2025 strongly, which is expected to bolster the Federal Reserve's (Fed) cautious stance on rate cuts.
On the 5th (local time), according to Automatic Data Processing (ADP), a private employment information company, non-farm payrolls increased by 183,000 in January compared to the previous month. This exceeded the expert forecast of 150,000 compiled by Bloomberg and Dow Jones. The employment growth for December last year was also significantly revised upward from the initially announced 122,000 to 176,000.
The average employment growth rate over the past six months has been the fastest since early 2023. As a result, the Fed's cautious stance, emphasizing that
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