“It was huge in light of what’s been expected,” said CNBC Senior Economics Reporter Steve Liesman Friday in an interview with Audacy about the most recent Bureau of Labor Statistics jobs report.
He explained that, rather than the jobs market cooling down, employment rose last month. Per the report, total nonfarm payroll employment rose by 353,000 in January, and the unemployment rate remained at 3.7%
“Job gains occurred in professional and business services, health care, retail trade, and social assistance. Employment declined in the mining, quarrying, and oil and gas extraction industry,” said the report.
Liesman also noted that job gains were retroactively added to previous months. While the COVID-19 pandemic national emergency declaration is over, he warned that the impact of the pandemic still lingers when it comes to the way experts measure the labor market.
“Right now, it tells us the economy is on solid footing,” and it looks like a recession isn’t headed for the U.S. this year. However, the Federal Reserve Bank remains concerned about inflation as the economy remains strong. It has already raised interest rates several times in an effort to tame inflation.
“Are they going to be concerned they see inflation and not cut interest rates as the market expects?” he asked.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2%. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said a press release issued by the Fed this week.