The U.S. January non-farm employment data far exceeds expectations, signalling an improvement in the labor market.

The Financial Times of London reviews the Non-Farm Payrolls report, pointing out that the US economy added 130,000 new jobs in January, far exceeding market expectations, indicating signs of improvement in the labor market after a series of weak data. US treasury yields surged in response as investors reduced their expectations of interest rate cuts this year. The yield on the 2-year treasury, particularly sensitive to monetary policy, soared to 3.55%, hitting a one-week high. The unemployment rate slightly decreased to 4.3%. After years of strong growth, US hiring activity sharply slowed in 2025. A series of new reports released last week indicated a potential worsening in the labor market as layoffs increase and job vacancies decrease. However, the latest data will help bolster Federal Reserve Chairman Powell's argument that the labor market is showing signs of stabilization.