Jan 10, 2025
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US Nonfarm Payrolls Grow by 256,000, Unemployment Rate at 4.1%

US Employment Report for December indicates robust labor market performance:

  • Nonfarm payrolls increased by 256,000, surpassing the forecast of 155,000.
  • November's figure was revised to 212,000 positions added.
  • Unemployment rate slightly decreased to 4.1%, compared to the expected 4.2%.

Concerns arise regarding potential inflation resurgence due to a strong jobs market. Analysts suggest:

  • Increased likelihood of maintaining interest rates rather than cuts in the near term.
  • US equities are trending down, influenced by reduced rate cut expectations and financial implications from recent wildfires in Los Angeles.

Despite these concerns, a resilient labor market and economic growth may support corporate profitability.