Non-Farm Payrolls Preview: US January Non-Farm Data May Show Modest Growth, but the Job Market is "Hot on Paper, Rigid in Reality"

BlockBeats News, February 11 — U.S. non-farm employment growth in January may have slightly accelerated supported by a decrease in seasonal industry layoffs, but overall the labor market remains sluggish due to ongoing uncertainties around import tariffs and stricter immigration enforcement limiting labor supply. Despite strong economic growth, the labor market is struggling. “The underlying pressures in the labor market are greater than what the overall unemployment rate indicates,” said Diane Swonk, Chief Economist at KPMG. “Wages are cooling, it’s harder to find a job after unemployment, and recent graduates are also finding it more difficult. Although the economic data on paper looks hot, the labor market remains quite rigid.” (Jin10)