Labor market surprise: U.S. adds 130,000 jobs in January
U.S. employers added 130,000 jobs in January, and the unemployment rate fell to 4.3%, beating expectations and signaling short-term labor market resilience, Qazinform News Agency correspondent reports.
The Labor Department said payroll growth last month surpassed forecasts of around 70,000 jobs. December’s gain was revised down to 48,000.
Healthcare led January’s hiring, adding 82,000 positions across hospitals, ambulatory services, and nursing facilities. Social assistance payrolls increased by 42,000. Construction added 33,000 jobs, largely among nonresidential specialty trade contractors, a category some economists associate with data center projects linked to artificial intelligence infrastructure. Professional and business services also posted moderate gains, while manufacturing and retail saw slight rebounds.
By contrast, the financial sector shed 22,000 jobs. Federal government employment fell by 34,000 and is down by 327,000 since peaking in October 2024, partly reflecting deferred resignation programs.
Despite the stronger January reading, annual benchmark revisions showed that 862,000 fewer jobs were created in the year through March 2025 than previously estimated. Payroll growth for 2025 was revised down to 181,000 from 584,000. Economists said the adjustments suggest underlying labor market momentum has been weaker than earlier data indicated.
President Donald Trump’s trade and immigration policies were cited by some analysts as factors shaping labor market conditions. Slower labor force growth has reduced the number of jobs needed each month to keep unemployment steady. Census data show the U.S. population rose by 1.8 million, or 0.5%, in the year ending June 2025.
Financial markets reacted by scaling back expectations for interest rate cuts this year. The Federal Reserve, which left its benchmark rate in the 3.50% to 3.75% range last month, may see the combination of moderate hiring and lower labor force growth as grounds to keep policy unchanged while monitoring inflation.
Earlier, Qazinform News Agency reported that Democratic governors were excluded from a White House meeting held in connection with the National Governors Association’s winter gathering.
