Just 143,000 jobs were added to the U.S. labor market in January, a number that fell short of forecasts and signaled a slowdown in the pace of hiring.
Job creation declined from the 261,000 jobs added in November and the 307,000 in December, The Associated Press reported.
Joblessness was down in January, with the unemployment rate edging down to 4%. But the numbers suggest those still looking for jobs may find it more challenging as the labor market cools from its two-year hiring streak.
"Employers are really maintaining their workforce, but they are not hiring significantly, nor are they laying off,’" Gregory Daco, chief economist at consulting firm EY Parthenon, told The Associated Press. "Any hiring decision is going to be judicious, because the cost of talent is still elevated.’"
Despite the decline, experts said that there should be "no cause for concern about the strength of the economy." Average hourly earnings rose by 4.1% over the past year, according to NBC News, as minimum wage hikes took effect in 21 states last month.
However, the numbers also mean the Federal Reserve will be in no rush to cut interest rates again, after three cuts in 2024.
“Today’s jobs report has likely taken a March rate cut off the table,” Seema Shah, chief global strategist at Principal Asset Management, said in a statement Friday. “Aside from a slightly disappointing headline payrolls number, the broader picture is still one of labor market resilience and sustained wage pressures.”
