49,000 jobs added to the US economy in January
The US economy added 49,000 jobs in January, bringing the unemployment rate down from 6.7% to 6.3%.
The consensus in the Economist Survey was that 50,000 jobs were added and the unemployment rate remained unchanged.
The new unemployment rate at 6.3% is about twice the pre-lockdown level, the report said, compared to a peak of 14.7% in April.
The numbers show signs of improvement, but they are only a few and offer little long-term outlook for the US economy.
“Though these numbers are improvements, in reality, the US labor market is difficult to read in current climates, mainly because of the level of restrictions varying between states,” the company Close Brothers Asset.
Following the report, the S&P 500 opened higher, touching on the highs on the daytime record.
While the non-farm salary report showed a decline in manufacturing jobs of 10,000, data over the past eight months has added 803,000 manufacturing jobs since April.
The encouraged signs of manufacturing bring attention to Joe Biden’s stimulus package in hopes of a more sustained economic recovery.
“On a positive note, the numbers show that manufacturers are seeing an increase in demand, which will help support work on that side of the economy. But President Biden’s $1.9 trillion It remains to be seen whether the Covid relief plan will pass the Senate or not,” Ulster said.
Beyond the stimulus package, government vaccines will play a key role in further reducing unemployment rates, according to Robert Ulster.
“Overall, health policy is the most important thing for unemployment, with the White House focusing on vaccine rollouts and with face mask mandates, we can see green buds in the coming weeks and months. I will,” he said.
