The US created 49,000 jobs in January, less than the expected 105,000, which caused unemployment to drop from 6.7% to 6.3%.

The number of jobs added rebounded from the loss of 277,000 in December.

“In January, remarkable increases in employment in professional and business services, and in public and private education, were offset by losses in leisure and hospitality, retail, healthcare, and transportation and storage,” reports the US Bureau of Labor Statistics said. There are still 10.1 million unemployed, the BLS added.

The labor force participation rate – the percentage of the American population who either works or is actively looking for work – fell slightly from 61.5% in the previous month’s report to 61.4%.

The report is likely to affect negotiations on US President Joe Biden’s $ 1.9 trillion stimulus package in the coming months, said former Federal Reserve macroeconomist Claudia Sahm. The stimulus package and future stimulus measures in the US could have an upward impact on asset prices and lead to higher inflation in the world’s leading economy, testing Bitcoin (BTC) as an inflation hedging tool.

“The political turnaround in tomorrow’s employment report will be intense,” Sahm said in an email on Thursday. “I don’t expect the numbers to have a significant impact on the relief negotiations. The debate is about whether or not $ 1.9 trillion is too big. One month of data from the Bureau of Labor Statistics won’t be critical. But you will hear politicians come up with numbers that fit their cause. “