Economists Forecast Strong January Job Growth Despite Tech Layoffs and Seasonal Noise
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Economists forecast 176,500 jobs added in January and the unemployment rate rising slightly to 3.8%, showing continued labor market strength.
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There's added noise in the January jobs report from seasonal adjustments and benchmark revisions that could cause volatility.
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Recent tech industry layoffs appear to be about efficiency rather than financial troubles, with broader labor market indicators still solid.
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Job cuts announced in January declined 20% year-over-year, though were the highest since 2009 excluding 2023.
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The labor market showed "resilience" in 2023 but faces a "more fragile situation" now with job gains concentrated in just 3 sectors recently.