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businessClosed Feb 4, 2022
Follow Live Updates on the U.S. Payroll Report for January
  • U.S. added 467,000 jobs in January, beating estimates of 125,000
  • Red-hot private sector hiring drives the payrolls surge
  • Revisions add 709,000 jobs in prior two months
  • Unemployment rate rises to 4% from 3.9%; Participation increases
  • Odds of a 50-basis point Fed hike in March rise
Thanks for joining us. Here are five key takeaways from the January U.S. payroll report released Friday:
  • The 467,000 gain in jobs surpassed all economist estimates, and signals a resilient labor market and demand for workers despite omicron’s hit. The gains were broad-based, spanning retail, hospitality, transportation and warehousing, business services and others.
  • The job improvement also extended across groups, with the Black unemployment rate tightening as more workers entered the market. Hispanic workers also saw an improvement in the employment-population ratio.
  • Labor strength and the gain in wages provide more fodder for those worried about inflation: Wages increased 5.7% from the prior year, the fastest pace since May 2020 when the entire economy was bouncing back from the first Covid hit.
  • The data increased bets that the Fed would hike 50 basis points in March. At the same time, the Fed also must weigh that decision against first-quarter GDP data, which is set to show a deceleration in growth.
  • Treasury yields jumped as the strong figures underscored expectations for the Fed to raise rates in coming months. Ten-year yields climbed past 1.9% to hit pandemic-era highs. Stock futures initially dropped before recouping gains. The dollar snapped a four-day slide.