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02/02/2024 |

January Non-Farm Payroll Report

Strong NFP Numbers

The U.S. economy added far more jobs than expected in January, increasing by 353,000 versus economist expectations of 185,000. This marks a notable increase from an upwardly revised total of 333,000 in December, as well. The job gains came mostly from the professional and business services, health care, and retail sectors. The unemployment rate held steady at 3.7%. Average hourly wages climbed by 0.6%, doubling the consensus of 0.3%, after rising 0.4% in December.

What Are Non-Farm Payrolls? 

The Non-Farm Payroll report provides data on the total number of paid workers in the United States, excluding employees in the farming sector, private household employees, non-profit organization employees, and government employees. It is a key economic indicator released by the U.S. Bureau of Labor Statistics (BLS) every month.

Market Reaction

Investors were quick to react to the upbeat NFP report. Equities soared, with major indices posting substantial gains. Bond yields saw an uptick, reflecting increased confidence in the economy.