U.S. January Employment Report: And the Beat Goes On

Key points: Employment rose sharply in January with a 304K gain. Past months numbers were revised downward after the yearly revision , but the trend continues to accelerate . Meanwhile, the unemployment rate rose by one tenth . Yet, this came with a rise in the participation rate while the shutdown might also have brought a temporary negative impact. Wages kept growing at the same pace (3.2% Y/Y). All in all, this is clearly an upbeat report with no sign s of slowdown in job growth , despite tapered confidence and tighter financial conditions in late - December / early - January. With still no sign of accelerating inflation and as risks remain ing skewed to the downside, this should not be a game changer for the Fed after this week ’s announcement .