US economy added 143,000 jobs in January

The U.S. economy added jobs at a slower pace than expected in January, as the Federal Reserve remains in a holding pattern for interest rate cuts as it evaluates the labor market and inflation data.

The Labor Department on Friday reported that employers added 143,000 jobs in January, below the estimate from LSEG economists.

The unemployment rate came in at 4%, coming in lower than economists’ expectations.

The number of jobs added in the prior two months were both revised, with job creation in November revised up by 49,000 from a gain of 212,000 to 261,000; while December was revised up by 51,000 from a gain of 256,000 to 307,000. Taken together, 100,000 more jobs were created in those two months than previously reported.

Private sector payrolls added 111,000 jobs in January, below the 141,000 estimated by LSEG economists.

Wage growth was stronger than expected, with average earnings growing by 0.5% from the prior month and 4.1% from a year ago. Those both top the LSEG economists’ estimates of 0.3% growth on a monthly basis and 3.8% year-over-year.

The manufacturing sector saw employment rise by a modest 3,000 jobs in January, which came in above economists’ expectations that the sector would shed 2,000 jobs for the month.

This is a developing story. Please check back for updates.