The trend of strong labor #market growth continued apace in January, with a 225,000 payroll gain in the #JobsReport, and a 0.25% month-over-month rise in average hourly #earnings, bringing #wage growth back to 3.12% year-over-year.
And despite some noise under the hood of the #JobsReport, due to annual revisions, we think #labor markets remain solid.
Of particular note, we’ve been impressed by hiring at top #tech firms, which underscores the fact that while disruptive to many industries, technological #innovation also creates a great many #jobs.
As a case in point, the five largest #tech companies in the U.S. hired a combined 198,000 people in 2019, or roughly 16,500/month. By comparison, the entire Australian #economy created 22,000 jobs/month last year!
From the standpoint of monetary #policy, we think the #Fed is absolutely right in its policy stance today, and it will closely watch labor #markets, prices and critically #financial conditions that hold the potential to shift the trajectory of growth and inflation.
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