The US Department of Labor recently released the Employment Situation Report for January 2022. Following last month’s disappointing reading of just 199,000 jobs, estimates had been increasingly pessimistic, with just 125,000 jobs predicted. However, the headline number came in substantially above consensus predictions. One recent report indicated that the economy added 467,000 jobs and, even more surprisingly, revised last month’s number up from 199,000 up to 510,000.
While the aggregate unemployment rate increased by .1% to 4.0%, the move is being interpreted as a positive sign based on the large upward move in the Labor Force Participation Rate,which increased from 61.9% to 62.2% month over month. Initial market reaction has been swift, with the policy-sensitive two-year note jumping 9bps from 1.20% to 1.29% following the release. The benchmark 10Y Note is up 9bps, currently yielding 1.91%
Jobs Report Headlines from the month of January include:
- U.S. added 467,000 jobs in January, beating estimates of 125,000
- Red-hot private sector hiring drives the payrolls surge
- Revisions add 709,000 jobs in prior two months
- Unemployment rate rises to 4% from 3.9%; Participation rate increases
- U.S. Jan. Average Hourly Earnings Rise 0.7% M/M; Est. 0.5%
- U.S. Jan. Average Hourly Earnings Rise 5.7% vs Year Ago
- U.S. Jan. Average Workweek at 34.5 Hours; Est 34.7
- U.S. Manufacturing Payrolls Rise 13,000 in Jan.
- U.S. Jan. Private Payrolls Increase 444,000; Est. 35k
