The January jobs report revealed fewer new jobs than expected but the unemployment ticked down slightly.

The unemployment rate, which is derived from a separate survey, declined to 4% from 4.1% the prior month. Economists expected the unemployment rate to remain unchanged. Average hourly earnings increased 0.5% in January, which was higher than forecast.

The new jobs report shows the pace of hiring slowed slightly in January with the economy adding 143,000 jobs. The report also revised down jobs numbers between April 2023 and March of 2024 by nearly 600,

After a solid January jobs report, more traders are betting that the Fed’s rate-cut pause might not be so brief.

The January jobs report revealed a drop in the unemployment rate to 4%, accompanied by payroll gains of 143,000. A Fed interest rate cut in March is now very unlikely.

The U.S. economy added a smaller-than-expected tally of new jobs last month, but a sharp jump in wage growth and revisions tied to population changes and immigration make for a noisy report that might not indicate broader strength in the labor market.

A strong January jobs report has investors believing the Federal Reserve likely won't be cutting interest rates in the near future.