US Nonfarm Payrolls Unexpectedly Beat Forecasts, Send Yields Soaring

Coming as a shocking surprise to markets on Friday, the latest payrolls report steamrolled well above forecasts, with the US economy adding four times as many jobs in January than expected, further solidifying the Federal Reserve’s hawkish plans to begin raising rates as early as next month.

The Bureau of Labour Statistics revealed that nonfarm payrolls jumped 467,000 last month, substantially beating out nearly all forecasts, most of which predominantly called for an advance of around 125,000. To make the report even sweeter, though, the BLS also upwardly revised December’s payrolls from 199,000 to 510,000, while November was upgraded from 249,000 to 647,000.

The better-than-expected jobs numbers put America’s unemployment rate at 4%— a modest increase from 3.9%, and above consensus estimates calling for an unchanged figure. Likewise, the labour participation rate also rose from 61.9% to 62.2%, surpassing expectations of no increase. The BLS also reported that average hourly earnings rose 0.7% from December and 5.7% from January 2021, further cementing concerns that inflation is still very well persistent.

But, even despite the optimistic jobs report, there were still about 3.6 million Americans employed but not working due to sickness, which is twice as many compared to December. At the same time, 6 million workers were unable to go to work because their place of employment either shut down or lost business due to Covid-19, which too, is twice as many from the month prior.

Treasury yields were sent soaring while US equities were mixed, as markets prepare for numerous interest rate increases throughout 2022. “This seals the deal for a March hike,” Moody’s Analytics head of monetary policy research Ryan Sweet told Bloomberg. “The Fed is going to take away from this that the economy is barreling toward full employment and this will make it more difficult for them to gracefully engineer a soft landing.”

Information for this briefing was found via BLS and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

US Unemployment Rate Falls to 3.8%, Wage Growth Stagnates

The US labour market continued to show signs of strengthening, as nonfarm payrolls substantially surpassed...

Saturday, March 5, 2022, 03:14:00 PM

US Nonfarm Payrolls Skyrocket Past Expectations Thanks to Methodology Mess

Despite the constant stream of layoffs becoming the norm of the new year, the American...

Friday, February 3, 2023, 03:05:00 PM

US Nonfarm Payroll Jumps By 336,000 Jobs In September

The U.S. Bureau of Labor Statistics revealed a boost of 336,000 in total nonfarm payroll...

Friday, October 6, 2023, 09:04:55 AM

US Unemployment Rate Unexpectedly Rises

Latest data from the Bureau of Labour Statistics shows that job creation in the US...

Friday, March 10, 2023, 12:40:00 PM

US Economy Unexpectedly Adds Another 339K Jobs in May

The latest jobs report for May shows a robust US economy, with a surge in...

Friday, June 2, 2023, 09:16:25 AM