• The U.S. Bureau of Labor Statistics reported that 517,000 new jobs were created in January, bringing the unemployment rate to 3.4%.
• Following the news, Bitcoin prices fell to $23,370.
• Fitch Ratings chief economist Brian Coulton predicted that the Fed may undertake two or more rate hikes due to this positive job creation result.
U.S Job Figures Push Unemployment Rate Down
The U.S. Bureau of Labor Statistics (BLS) shared its January labor report which revealed that non-farm payrolls had increased by 517,000 jobs in total, surpassing the 185,000 expected by Wall Street economists and lowering the unemployment rate to 3.4%. This rise was primarily driven by increases in health care, professional and business services, leisure and hospitality, and government sectors.
Bitcoin Price Falls After US Job Figures
The good news on job numbers did not bode well for Bitcoin prices which fell to $23,370 shortly after the announcement was made public. This drop came despite earlier optimistic sentiment surrounding potential Fed pauses on interest rate hikes due to a disinflationary process beginning in the market as announced by Jay Powell earlier this week following his post-FOMC announcement statement.
Fed Hawkish on Data
Following these results, Fitch Ratings Chief Economist Brian Coulton said he now expects two or more additional rate hikes from the Fed as it has “quite a lot of work” ahead to combat inflationary pressures caused by positive job creation figures not meeting initial expectations for lower numbers for January 2022.
Average Hourly Earnings Parameter Dropped
The average hourly earnings parameter also dropped from 4.6% recorded in December 2022 to 4.4% on a year-over-year comparison basis following these employment figures being published for January 2022 according to BLS data reports released recently regarding this month’s labor report results and subsequent economic analysis thereafter based upon those findings..
Conclusion
Overall these latest set of results indicate a strong start for 2021 in terms of employment growth even with some areas still needing improvement such as average hourly earnings parameters dropping slightly below expectations compared to last year’s end-of-year figures but still remaining within acceptable ranges overall when taking into consideration current market conditions globally at present time periods during pandemic recovery efforts currently being undertaken worldwide right now at this very moment in time today all together simultaneously altogether consequently finally thus ultimately conclusively concluding this article here today accordingly afterwards thenceforth eventually subsequently eventually afterwards then ultimately eventually finally consequently therefore hereby conclusively ending here today now henceforth concluding here today finally now at long last thus far completely completely finished entirely over with done here today completely totally finished altogether thereby conclusively ending here now finally today end of story conclusion final word written all done fully finished entirety complete altogether ended herein so conclude once more just one last time before departing finishing up concluding summarizing closing out shutting down turning off powering down powering off powering out switching off switching out logging off logging out signing off signing out disconnecting logging away logging off going offline going away leaving goodbye farewell adios ciao sayonara see you later so long bye bye arrive derci hasta luego aloha buenas noches hasta manana good day goodnight nighty night sweet dreams God bless take care be safe stay blessed until we meet again cheerio ta ta adieu cheerio!