Agency: Employment data does not look that hot

Jeffrey Roach, an analyst at LPL Financial, said that in 2024, the U.S. private sector will add an average of 149,000 new jobs per month, down from 192,000 in 2023, and is expected to fall again in 2025. The surge in non-farm payrolls by 256,000 in December and the small drop in the unemployment rate (against the backdrop of the possibility of large-scale deportations of illegal immigrants) have raised concerns that the Federal Reserve may even need to raise interest rates. But there may be more optimism behind the data. Roach said: "More than 16% of the non-labor force is foreign-born, including undocumented immigrants, so the impact of tightening immigration policy on the economy may not be as harmful as some people say." "In the meantime, the Fed will keep interest rates unchanged." (Jinshi)