256K jobs were added in Dec. More than expected. Unemployment fell back to 4.1% (from 4.2%) which is higher than the lows of less than 4% earlier this year.
Wage growth slowed and was 0.3% in Nov and has been 3.9% from Nov to Nov (higher than the 2.7% inflation).
Stock markets consider the jobs report too "strong" and fell.
good for workers = bad for companies/stock holders
https://apnews.com/article/jobs-unemplo ... 2854f6309b
On another front, over 9 million people got a pay raise on Jan. 1 due to states and local governments increases in minimum wage.
https://www.npr.org/2025/01/01/nx-s1-52 ... rease-2025
US economy (Jan 2025: jobs up, wage growth slows, stocks down)
It never makes sense. A strong jobs report (and lowering wage pressure) shows the economy is stronger than thought … so Government policy promoting job growth is less likely and stocks fall as a reaction. But the economy is already stronger than expected so why does a potential lack of future Government support matter more than proof today.Renegade7 wrote: Sat Jan 11, 2025 12:29 pmI'm still getting used to the notion in economics that even good news can be bad news.
Buts it's the economy, stupid. Let's never forget that golden rule in politics again, please.
Unexpected positive news being treated as bad news.
