3 February 2023
If you are covering the latest US employment data, please see the following comment from Marcus Brookes, chief investment officer at Quilter Investors:
“Today’s US jobs report beats expectations and serves as a further reminder that the world’s largest economy continues to remain relatively robust despite the economic challenges it continues to face.
“517,000 jobs were added in January, up from the 223,000 increase seen in December, and the unemployment rate fell slightly further to 3.4% from 3.5% in December.
“Earlier this week the Fed took a pause for breath with its first rate rise of 2023 - a quarter of a percentage point in place of the 50bps we have become accustomed to – and suggested the end of the hiking cycle was drawing nearer.
“Should the momentum be knocked out of the labour market in the coming months then the end may come sooner than expected, though if the jobs market manages to remain strong then the path of inflation will continue to dictate the timings of the Fed’s pivot. Another jobs report is due ahead of the next Fed interest rate decision, so there is time yet for some weakness to become apparent. However, if inflation remains stubborn and the jobs market can maintain its strength, then further rate rises cannot be ruled out.”
