US Higher-Than-Expected Jobs Addition in December Diminishes Hope for Rate Cut in March

Jobs report released on Friday showed employers added 216,000 jobs in December, much higher than an estimated 170,000 by experts and economists. Meanwhile, the unemployment rate was at 3.7%, slightly lower than forecast for 3.8%.

Higher-than-expected jobs report came from an addition of 52,000 in government sectors and another 38,000 in health care-related fields. Meanwhile, average hourly earnings increased 0.4% on the month and up 4.1% from last year. Both figures were higher than estimates for 0.3% and 3.9%, respectively.

Following the jobs report, the US 10-year Treasury yield rose to around 4.04%. 

A strong labor market could indicate that the Federal Reserve might potentially delay the first of its rate cuts from the market’s anticipation to be in March.