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Unemployment rate is little changed at 4%. Leisure and hospitality are leading January gains.

Unemployment rate

Unemployment rate is little changed at 4%. Leisure and hospitality are leading January gains.

Despite the big concerns and the recent omicron surges and their effect on the labor market, the January report comes with some optimistic news for investors. The Bureau of Labor Statistics released the January unemployment statistics this morning. Beating Wall Street estimation for January nonfarm payrolls, which was expected to be somewhere near 150.000.

According to the unemployment situation report, non-farm payrolls jumped by 467,000. The report’s release represents surveys from the previous two months, which is three times the estimated payroll. These new releases reported continued growth in leisure and hospitality. Inventors had some big concerns about leisure and hospitality since the Omicron variant is spreading faster than any other Covid variant. We have seen high membership and new records of workers quitting the leisure and hospitality departments for health concerns and fears. The big gains were mostly in leisure and hospitality. The Bureau of Labor Research reports that this had the biggest employment gains.

By the end of January, leisure and hospitality gained a total of 151.000 open positions. Bars and restaurants also saw an increase of 108, 000 new hires, plus an increase of 86, 000 in professional and business service contributions. The retail sector also surged, with a total of 61.000 hires.

The unemployment rate was a bit different from November’s report, as the reported survey found that 6 million workers were unable to work or find a job in the U.S. This explains the market’s mixed performance, as the S&P 500 had its worst start to a year since 2020.

In addition, Friday’s release also added some good news related to the labor force participation rate, which increased by 0.3 percentage points to 62.2%. Fed officials describe this as the highest level of increase since March 2022, or the start of the pandemic. The federal rescue finds this news positive and encouraging, which gives a better starting point for the March interest rate hikes.

The labor market is also recovering.

The labor market reported that in January a total of 6 million workers were lost. The reasons differed from one to another. Most workers get fired, quit, or their employers simply go bankrupt and close their businesses. The releases provided highly important figures, most of them about labor conditions. The coronavirus variant omicron increased by 15.4% this month, leaving the labor market in a volatile position. Still, the market had performed very well despite the high increase in Omicron cases and the continued inflation surges.

The stock market has declined after releasing the report, but on the other hand, Amazon has released its fourth-quarter revenues. Amazon has surpassed all estimations by showing an increase of 9.4% in its sales. It’s the biggest digital growth since 2017. While tech stocks continue to rise, the S& P 500 is experiencing one of its worst periods since the outbreak of the pandemic.

Investors now will shift their concerns to March interest rate hikes and how Fed officials will comment on the recent repose of the Bureau of Labor Statistics. On top of that, it’s been unclear how the U.S and the Russian government will find common ground to make a sane agreement. The Ukrainian crisis’s effect on the global supply is still unclear. That’s another thing that keeps investors on the edge. The level of stock market volatility is high now. Investors are not ready to take a risk in a market that experiences uncertain and mixed stock performance.

Unemployment rate

Written by Editor

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