The US unemployment rate dipped to 4.0 percent in January, down from 4.1 percent in the previous month, the US Labor Department announced on Friday in Washington. The number of the unemployed accordingly decreased to 6.8 million. According to the department, American businesses created approximately 143,000 new positions outside of agriculture. The number of long-term unemployed, meanwhile, continued to decline, standing at 1.4 million people.
The US labor market data are closely watched by investors worldwide. If the labor market is robust and inflation is high, interest rate cuts become less likely, a development that would be welcomed by stock market participants, as it would make the savings account a less attractive alternative to stocks and make it cheaper for companies and other entities to borrow.