JANUARY JOBS REPORT: This is NOT what we expected to see

• U.S. economy added 130,000 jobs in January, significantly above the 70,000 estimate.
• The unemployment rate declined to 4.3%, lower than the 4.4% expectation.
• Private payrolls added 172,000 jobs, while government jobs decreased by 42,000.
• Average hourly earnings increased by 0.41%, higher than expected, and labor force participation was 62.5%.
• Market reaction: Dow futures up significantly, S&P and Nasdaq futures also higher, and Treasury yields jumped.

The January jobs report showed a stronger-than-expected addition of 130,000 jobs, with the unemployment rate at 4.3%. Private payrolls significantly exceeded estimates, while government jobs saw a decrease. Experts note a robust economy, but revisions to prior months and the impact of AI on job sectors are key areas of focus. The market reacted positively to the strong economic data, with stock futures rising and Treasury yields increasing.