The US job market likely started 2025 with decent but unspectacular growth, according to economists’ predictions. A survey by FactSet suggests that companies, government agencies, and nonprofits added 170,000 jobs in January, a respectable performance down from the average of 186,000 new jobs per month in 2024.
The economy is expected to remain strong, with consumers enjoying job security and rising wages, giving them confidence to spend freely. However, economists are worried about the future, citing concerns over a federal hiring freeze imposed by President Trump and his threat to impose tariffs on Canada and Mexico.
The first monthly jobs report of Trump’s second presidency will confirm that he inherited a solid economy. The unemployment rate is expected to remain low at 4.1%. However, a cold snap in January may have increased seasonal layoffs, which won’t be reflected in the February numbers.
Economists are also concerned about Trump’s plans to impose tariffs on the European Union and Canada and Mexico, which could rekindle inflation and impact economic growth. The job market has cooled from its red-hot days of 2021-2023, with American payrolls increasing by 2.2 million last year.
As the labor market cools, workers are losing confidence in their ability to find better pay or working conditions. Layoffs remain below pre-pandemic levels, creating an unusual situation where employed workers enjoy job security but those looking for jobs face tougher conditions.
Source: https://www.yahoo.com/news/us-job-market-likely-began-234318471.html