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U.S. Economy Sees Modest Job Gains to Start the Year, Unemployment Ticks Down
WASHINGTON D.C. – The U.S. economy kicked off the year with the addition of 130,000 jobs in January, though earlier figures for 2025 job gains were revised downward, according to Wednesday’s report from the U.S. Bureau of Labor Statistics.
While non-farm payrolls showed a slight increase over the previous two months, overall gains remain modest. Wage growth, however, saw a healthy rise, reaching 3.7% on a year-over-year basis.
Revisions to previous months’ data indicate a slightly slower job market towards the end of last year. November’s employment figures were adjusted down by 15,000, settling at a total of 41,000 jobs added. December experienced a smaller downward revision, decreasing by 2,000 to a total of 48,000 jobs added.
The unemployment rate saw a slight dip in January, falling from 4.4% in December to 4.3%. Unemployment rates across various demographic groups, including gender, race, and ethnicity, remained largely consistent.
The healthcare sector was a significant driver of job growth, adding approximately 82,000 positions. This was largely propelled by ambulatory health care services, which saw an increase of about 50,000 jobs. Social assistance also contributed positively with an addition of around 42,000 jobs, and the construction industry grew by 33,000 positions.
President Donald Trump welcomed Wednesday’s report, describing it as “far greater than expected,” and reiterated his call for the Federal Reserve to lower interest rates. This marks the most substantial monthly job growth since the beginning of his term. In his first year back in office, job growth averaged approximately 15,000 jobs per month.
Conversely, federal government employment continued its decline, shedding 34,000 jobs in January. This reduction includes federal employees who accepted deferred resignation offers last year following recommendations for broad workforce cuts by the Department of Government Efficiency.
This January jobs report was released several days later than scheduled due to the partial government shutdown that occurred last week.