U.S. equities rallied over 1% after January’s jobs report showed 243,000 jobs were added and the U.S. unemployment rate lowered to 8.3% from 8.5%. The private sector added 257,000 jobs in January. The best gains were in professional and business services.
Economists were expecting between 140,00 to 150,000 new jobs to be added. The better than expected figure of 100,000 new jobs was met with optimism in the market. However, some Republicans were not satisfied enough with the positive jobs trend.
” We can’t be satisfied with an unemployment rate mired above 8% for years on end; we must do better.” Speaker John Boehner (R-Ohio) said.
Still, most economists are acknowledging that the positive trend with jobs in the economy is a tell tale sign that the U.S. economy is gradually making progress.
Moody Analytics Economist Mark Zandi told CNBC that the jobs report was “unambiguously positive.” Zandi acknowledged the positive trend.
” Businesses are starting to engage. Every month won’t be like this one, we have some tough months ahead but this is a good trend” he said.
The positive batch of economic data during the past few weeks in the U.S. is making the likelihood of more quantitative easing (QE3) by the Fed less likely in the near future.