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Jobs Gains Crush Expectations While Disturbing Long-Term Trends Remain

Published 02/05/2017, 01:37 AM
Updated 07/09/2023, 06:31 AM

The labor report, a continuation of the ADP's strong release, confirms the EAC's rather sudden transition in December. As a result, investors are beginning to discount a more aggressive Fed in 2017; this will only stir the ongoing currency manipulation debate that sees conspiracies and manipulations rather than the intentions of the invisible hand.

Today's stronger than expected labor report, however, doesn't reverse the long-term trends from higher paying goods-producing to lower paying service producing jobs (chart).

Chart
Breakdown Of Nonfarm Payrolls Jobs

Headline: January job gains crush expectations, wage growth disappoints

The first jobs report of the Trump era just dropped and it was better than expected.

In January, the US economy added 227,000 jobs while the unemployment rate rose slightly to 4.8%. Economists were looking for payrolls to grow by 180,000 with the unemployment rate expected to hold steady at 4.7%.

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