The release of the U.S. January nonfarm payrolls report has been postponed to Wednesday due to a short-term partial government shutdown. Recent employment indicators have shown signs of weakening, with ADP reporting minimal job additions in January and a significant rise in layoffs by Challenger companies. Additionally, the four-week moving average of initial jobless claims increased, and JOLTs job vacancies hit a five-year low in December.
Despite these concerns, employment indices for the ISM manufacturing and service sectors remained stable, offering some relief. White House officials, including Peter Navarro and Kevin Hassett, have been managing market expectations, suggesting that a monthly employment increase of around 50,000 could be considered stable given current labor force dynamics. The upcoming nonfarm payrolls data is expected to influence market perceptions of the Federal Reserve's policy direction and the labor market's health.
U.S. Nonfarm Payrolls Delayed Amid Government Shutdown
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