U.S. unexpectedly adds 130,000 jobs in January after a weak 2025

"Hiring grew a little warmer last month after a chilly year in 2025. A report from the Labor Department Wednesday showed U.S. employers added a better-than-expected 130,000 jobs in January but an annual update shows hiring last year was much weaker than initially reported. The news comes amid worries that the nation's jobs engine has been sputtering. Employment gains for November and December were revised down by a total of 17,000 jobs."

"Once a year, the Labor Department updates its jobs tally with more accurate but less timely information drawn from unemployment tax records. Wednesday's revision shows there were nearly 900,000 fewer jobs in the economy last March than originally counted. On average, employers added only 15,000 jobs a month in 2025. "This does not remotely look like a healthy labor market," Federal Reserve governor Chris Waller said in a statement anticipating the revision."

"Health care and construction were among the few industries that saw significant job gains in January. The warehouses and transportation industry lost jobs and the federal government continued to shed workers. Manufacturing added 5,000 jobs while hospitality added just 1000. The unemployment rate dipped to 4.3% from 4.4% the month before. That's quite low by historical standards. The unemployment rate among African Americans also fell, but remains elevated at 7.2%."

U.S. employers added 130,000 jobs in January, but an annual payroll revision cut prior counts sharply. The Labor Department reported nearly 900,000 fewer jobs last March than originally tallied and revised November and December down by 17,000 combined. Average monthly job growth in 2025 was only 15,000. Health care and construction led January gains while warehouses, transportation and the federal government lost workers; manufacturing added 5,000 and hospitality 1,000. The unemployment rate fell to 4.3% overall and to 7.2% for African Americans. Tightened immigration enforcement and retiring baby boomers likely reduced the available labor supply. Federal Reserve governor Chris Waller urged rate cuts while most policymakers held rates steady after three cuts last year.

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