US economy shows steady job growth in January amid Biden-Trump transition
Hiring across the US economy moderated in January, but the labor market continued to grow at a steady pace during the transition period between Joe Biden and Donald Trump’s presidencies.New data from the labor department released on Friday showed 143,000 jobs added to the economy in January, short of the 168,000 expected by economists.The unemployment rate remained steady at a relatively low 4%, edging slightly downward from 4.1% in December.Job growth estimates for previous months were revised higher.
Employers added 261,000 jobs in November, up from 212,000; and 307,000 in December, up from 256,000.Jobs growth was lower than initially reported in 2023 and early 2024, with 589,000 fewer jobs added than previously estimated, according to the latest revisions.This revision, while significant, was smaller than some economists had expected.Trump is starting his second term when the labor market has cooled from its peak in 2022.Americans are now seeing fewer job openings and are changing jobs less often.
There were 1.3m fewer job openings last year than in 2023, according to the Bureau of Labor Statistics (BLS).The Federal Reserve started bringing down inflation rates in the fall, after the labor market finally showed signs of slowing down.Since then, the central bank has brought down interest rates a total of three times, but chose to keep rates steady at its last board meeting in January.Interest rates currently sit at a range of 4.
25% to 4.5%, a point down from a year ago.Inflation has been hovering above 2.5% over the last few months, down from a peak of 9.1% in 2022.
That Fed officials chose not to bring interest rates down further last month shows officials, like economists, are waiting to see the impact that Trump’s presidency will have on the economy.In a statement, the White House claimed the new data showed the economy under Biden was “far worse” than previously thought and “underscores the necessity of President Trump’s pro-growth policies”.“President Trump is delivering on his promise to restore our broken economy, revive small business optimism, create jobs, and ignite a new Golden Age for America,” Karoline Leavitt, the press secretary, said.The president has promised to bring down inflation and “bring up jobs”, saying at the end of January: “We’re going to have a lot of jobs.We’re going to have a lot of companies moving in.
”Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionBut many economists question the impact that his tariffs on Canada, Mexico and China will have on the US economy.Since 1 February, there is a new 10% tariff on all Chinese imports.Meanwhile, 25% tariffs on imports from Canada and Mexico are set to go into effect on 1 March, after Trump agreed to a month-long delay with leaders from the two countries.Tariffs will increase costs for many US businesses who rely on products from the three countries, which are the US’s biggest trading partners.Trump has also floated the possibility of tariffs on the European Union and the UK.
Trump has acknowledged that the US will probably have to pay a price for such hardline trade policies but declared the pain worth it,“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID,” Trump said on Truth Social,
Boris Johnson one of most damaging PMs in history, says Reform UK chair
Boris Johnson was “one of the most damaging prime ministers in this country’s history”, according to the chair of Reform UK.In an interview with BBC Radio 4’s Political Thinking podcast, Zia Yusuf said Johnson would not be welcome in his party.“History will judge Boris Johnson as one of the most damaging prime ministers in this country’s history,” he told the host, Nick Robinson.The increase in net migration during Johnson’s premiership was “a total betrayal of everybody who voted for Brexit”, Yusuf said. “He took public spending close to Soviet Union spending
Bridget Phillipson accused of having ‘Marxist ideological dislike of academies’ by Tory-linked headteacher – as it happened
Katharine Birbalsingh, who is credited with being one of the best headteachers in the country because of her success with Michaela school in London, has launched a ferocious attack on the education secretary, Bridget Phillipson.In an open letter published on social media, Birbalsingh described Phillipson as having “a Marxist ideological dislike of academies” and claimed she was unable to answer questions about her schools bill when they met on Monday this week.Birbalsingh also claimed Phillipson showed no interest in learning how Michaela, a non-selective inner city school, has been able to achieve outstanding results.Two weeks ago Kemi Badenoch quoted Birbalsingh at PMQs when criticising the children’s wellbeing and schools bill, which will limit the freedoms enjoyed by academy schools. Birbalsingh, who is widely admired by Tories but who describes herself as a floating voter, published a lengthy criticism of the bill last month
Letter: John Prescott obituary
I am delighted to see that, since his death last year, John Prescott has been reclaimed as a national treasure, whereas, when he was an MP, he was usually portrayed by most of our media as a grumpy “bulldog who swallowed a wasp”.I was fortunate enough to travel with John on his “Get Ready” battlebus at two general elections, MC-ing his rallies, mostly in old Labour constituencies.John was a warm, hilarious and inspiring speaker, and delighted the crowds with indiscreet tales of opponents, and of the workings and skullduggery at the House of Commons. He was as good as any northern comic, and every day felt like a party when John was around.His contribution to Labour’s successes in the Blair years (to my mind, still undervalued by the media) was enormous
Peter Mandelson swears at reporter after question on Epstein relationship
Peter Mandelson told a reporter to “fuck off” when asked about his relationship with Jeffrey Epstein.He was questioned about his links with the billionaire paedophile in an interview with the Financial Times as he prepares to become Britain’s ambassador to Washington. However, he told the reporter in no uncertain terms that he did not want to discuss it.Lord Mandelson said: “I regret ever meeting him or being introduced to him by his partner Ghislaine Maxwell.“I regret even more the hurt he caused to many young women
Labour launches ads in Reform-style branding to boast about deportations
Labour has launched a series of adverts with Reform-style branding and messaging as the party seeks to combat the rise of the rightwing party.The Facebook adverts include a series from a group called UK Migration Updates boasting about how many people the government has deported. The adverts do not display the Labour logo and are in a similar shade of blue to that used by Reform UK.The party has also set up a Facebook group called Protect Britain’s Communities designed to highlight the government’s record on crime and antisocial behaviour. The page also does not display any Labour livery but sports a large union flag
No room for reality as Yvette Cooper takes Nick Ferrari’s phone-in in her stride | John Crace
This was more like it. The kind of slow day when the government more or less looked like it was going to set the news agenda. Not be derailed by some catastrophe or cock-up. Or Donald Trump declaring war on Greenland and turning Gaza into a Middle East Riviera of golf courses and casinos. The world as one large real-estate deal
US job creation slowed in January; UK can’t say ‘job done’ fighting inflation, say’s BoE’s Pill – as it happened
US economy shows steady job growth in January amid Biden-Trump transition
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Green campaigners fear UK to renew subsidies to Drax power station
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