Strong positive surprise in nonfarm payrolls in the US

Nonfarm payrolls data for January were released in the US.

Non-farm employment and price increases, which are critical for the monetary policy path in the USA, were evident.

In the US economy, non-farm employment increased by 517 thousand in January.

According to the Bloomberg survey, it was assumed that the US created 188,000 net nonfarm jobs.

ADP private sector employment data, which is accepted as the leading indicator in terms of data, pointed to a weak increase in employment.

According to ADP information, private branch employment in the USA increased by 106 thousand in January. The expectation was for the increase to be 180 thousand. The increase, which was announced as 235 thousand in December, was revised to 253 thousand.

According to the ADP information set, the number in question was recorded as the lowest increase since the decrease seen in January 2021.

ADP Chief Economist Nela Richardson said that the incredible weather conditions seen in the USA in January coincided with the week referenced in employment measurements and the effects of this were seen. Richardson emphasized that the employment trend is strong in the rest of the month.

ADP data pointed out that an average of 7.3 percent increase was experienced in the salaries of employees who remained in the mission in January. The price increase of employees who changed their jobs was recorded as 15.4 percent on average.

It is at the top of the data watched by the Fed.

Fed members, who gave the signal to continue the increase in the coming period even though the rate of increase in interest rates slowed down, pointed out in the text of the decision that the labor market has remained strong in recent months in the face of the decline in inflation.

Economists stated that the measured increase in employment and prices accompanied by the softening in inflation supported the soft landing scenario.

Anna Wong, US Chief Economist at Bloomberg Economics, stated that measured price increases could support the rally that occurred after the Fed’s interest rate decision. Wong nevertheless stated that the layoffs occurred in high-priced technology and finance, noting that there may be partial moderation in prices, not generalization.