The U.S. Bureau of Labour Statistics just released the January jobs report, and it was a big miss.
113,000 workers were added to nonfarm payrolls in January, below the 180,000 estimate.
Average hourly earnings came in at 0.2% month over month, in line with expectations.
Year over year, average hourly earnings climbed to 1.9%, above economist expectations of 1.8%.
“While everyone else focuses on the non-farm payroll increase and the unemployment rate, I am interested in wage growth and the employment rate,” said Kit Juckes, a global strategist at Société Générale, ahead of the report.
“Wage growth, depending on which of the BLS series on average earnings I use (they produced a new one in 2006), is meandering sideways in a 1.5-2.3% range,” he said.
Last month, Capital Economics’ Paul Ashworth wrote clients that wage growth is poised to take off this year.
“Finally, the survey evidence on future wages is also fairly clear. There has recently been a sharp increase in the proportion of small businesses in the NFIB survey saying that they plan to increase workers compensation, which points to a rapid rise in wage inflation this year,” he wrote.
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