The first jobs report under the new Trump administration has come in weaker than expected. 

The US economy added 143,000 jobs in January, which was far fewer than the 169,000 forecast by economists.

It was the weakest start to a year for overall jobs growth since before the Covid-19 pandemic, but there was a silver lining. 

The unemployment rate fell slightly to 4 percent from 4.1 percent in December. Investors had expected it to hold unchanged. 

Trump’s administration hit back immediately, saying that the report ‘reveals the Biden economy was far worse than anyone thought.’ 

It comes after hiring jumped unexpectedly In December. New revised figures on Friday revealed the economy added 307,000 jobs in December, up from an earlier figure of 256,000.

While this indicated strength in the economy, it also sent the stock market tumbling over fears that inflation is proving sticky. 

Friday’s report is the first jobs count since President Trump took office on January 20, with plans to boost growth, cut taxes and impose sweeping tariffs on key trade partners. 

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US Press Secretary Karoline Leavitt said in a statement: ‘Today’s jobs report reveals the Biden economy was far worse than anyone thought, and underscores the necessity of President Trump’s pro-growth policies.  

‘During his first weeks in office, President Trump declared a national energy emergency to Make America Energy Dominant Again, pledged to cut 10 regulations for every new regulatory action, and outlined a plan to deliver the largest tax cut in history for hardworking Americans.’

She added that 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.’

Economists expected non-farm payrolls to grow by 169,000 from December to January, with the tally weighed down by the devastating Los Angeles wildfires and bitterly cold weather in many parts of the US.

In fact, the Bureau of Labor statistics said these factors ‘had no discernible effect on the count.’ 

Job gains have not slowed because of mass layoffs, but because hiring activity has slowed sharply, CNN reported, which has kept unemployed workers on the sidelines for longer. 

Experts warn that this could mean that if there were to be a sudden turn in the economy – for example as the result of tariffs – then there would be little buffer for businesses to make a change.

‘That leaves us in a situation where things can essentially flip quite quickly, because you’ve already got companies hiring as if they’re in a recession – even if they’re not laying people off,’ Oliver Allen, senior US economist at Pantheon Macroeconomics, told the outlet.

The health of the labor market is also a key consideration for the Federal Reserve, and investors will now be looking to the report for signs as to what move the central bank may make at its next meeting in March.

The US economy added 143,000 jobs in January, which was far fewer than the 169,000 forecast by economists

Friday's report is the first jobs count since President Trump took office on January 20

Friday’s report is the first jobs count since President Trump took office on January 20

‘Stocks fell in January on the back of a strong jobs report, but today’s labor report appears more mixed,’ said eToro US Investment Analyst Bret Kenwell on Friday.

‘On the plus side, the unemployment rate inched lower to 4 percent and last month’s print was revised even higher. 

‘However, this month’s headline jobs figure missed expectations, while average hourly earnings came in ahead of economists’ estimates.’

Strong wage growth is good for workers and should be viewed as a positive for consumer spending.

But Wall Street has watched this gauge closely over the last few years, Kenwell added, as investors worry that too strong of wage growth could push inflation higher.

Julia Pollak, ZipRecruiter Chief Economist, said that the weaker than expected report defied ‘expectations of stabilization’ for the labor market.

‘Looking ahead, the labor market remains on uncertain footing. A stronger consumer is keeping parts of the economy afloat, but high interest rates continue to drag on investment and production,’ she said.

The majority of job growth for January was concentrated in health care, which added 44,000 roles, and retail, which added 34,000 roles. 

Government also added 32,000 jobs in January. 

It comes as Trump and Elon Musk’s Department of Government Efficiency (DOGE) are trying to cut down the federal workforce as part of their directive to save $2 trillion in federal spending. 

Federal workers have been offered to take Trump up on a ‘buyout’ deal, which gives workers the option to resign from their current position but remain on the payroll with all benefits until September 30.

So far, around 40,000 workers have accepted the offer, which has been extended until Monday. 

The stock market had a fairly muted response to the report on Friday, with the S&P 500 up around 0.1 percent, while the Nasdaq was up around 0.3 percent.  

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Read more at DailyMail.co.uk