US job growth slowed in January after 2024 downward revision

US job growth moderated in January after annual revisions from the government revealed less vigour in the labour market in 2024 than previously thought.

Non-farm payrolls increased by 143,000 in January after a revised 307,000 gain in December, a Bureau of Labour Statistics report showed on Feb 7. The BLS said the wildfires in Los Angeles, as well as severe winter weather in other parts of the country, had “no discernible effect” on employment in the month.

The unemployment rate was 4 per cent – the survey used to produce the number incorporated separate revisions to reflect a new population estimate at the start of the year, which makes the figure incomparable to prior months.

The government’s once-a-year benchmark revisions now show that job growth averaged 166,000 a month in 2024, a slowdown from the initially reported 186,000 pace. The BLS uses records from the unemployment insurance tax system, and also adjusts for the openings and closings of businesses, to revise its previously published payrolls counts.

The change in January employment and updated payrolls figures back to early 2023 show a moderating yet healthy labour market that continues to fuel the economy without contributing to inflationary pressures. It also helps explain why the US Federal Reserve policymakers have signalled they aren’t in a hurry to lower borrowing costs further after three interest-rate cuts in 2024.

Officials are also contending with inflation that’s dissipating only gradually, and uncertainty around new policies from President Donald Trump. While Fed chairman Jerome Powell has most recently described the job market as “pretty stable”, he and his colleagues have repeatedly said they wouldn’t like to see it cool any further.

Stock futures, Treasury yields and the dollar fluctuated after the report.

Meantime, hourly wages climbed 0.5 per cent. BLOOMBERG