US non-farm payroll, average hourly earnings jump in January as recession worry mount
by SOURAV D | VIEW 337
On Friday, the US Labour Department’s closely watched employment report had illustrated that the US employers had created more jobs than anticipated last month, while unemployment rate drops to 3.4 per cent, reflecting towards a plausible increase in inflationary pressure as average hourly earnings continued to surge. Apart from that, the US non-farm payroll report for January also had illustrated that the economy might be edging closer towards a recession, as a strong job report would highly likely to provoke the US Fed to stay on its hawkish rate-hike path.
In the latest flashpoint of a plausible increase in price pressures in a near-future, a sustenance in increase in average hourly earnings rose much faster than anticipated last year, eventually pointing towards a giant leapfrog in inflationary pressure.
US job growth beats estimate in January
According to data from the US Labour Department, US employers had created 517,000 jobs last month, marking off the highest in more than six months, while December non-farm payrolls were revised higher to 260,000 positions compared to a previously reported reading of 223,000 jobs.
Apart from that, average hourly earnings jumped by 0.3 per cent in January compared to an increase of 0.4 per cent a month year, while over the past twelve months through January, average hourly earnings grew by 4.4 per cent compared to the same time-frame a year earlier, comfortably contributing to a penetrating inflation-surge while scalping a large chuck of savings from common American households.
Besides, citing that the US Fed would more likely to push the US economy towards an inevitable recession earlier-than-anticipated following release of a mixed set of data over recent weeks, a Chief International Economist at UniCredit Bank in London, Daniel Vernazza said, “The labor market is still running hot, too hot for the Fed's liking.
Anyone that thought the Fed might stop hiking as soon as its March meeting is likely to be disappointed on this evidence”.