US economy added 130,000 jobs in January, unemployment falls to 4.3%

WASHINGTON - U.S. employers added 130,000 jobs in January, the Bureau of Labor Statistics said Feb. 11, and the agency’s revisions to prior monthly data indicate the labor market was weaker in 2024 and 2025 than previously estimated.

January job growth surpassed forecasters' expectations, as employers added more than double the amount of jobs they did in December.

The unemployment rate ticked down to 4.3%, after falling from 4.6% in November to 4.4% in December. The report’s release, originally scheduled for Feb. 6 and delayed due to a short government shutdown, follows several other reports that have reignited concerns about a labor market still adapting to tariffs, an immigration crackdown limiting the supply of workers, and employers’ adoption of artificial intelligence.

Ahead of the report’s release, National Economic Council Director Kevin Hassett told CNBC on Feb. 9 that people should expect “slightly smaller jobs numbers,” saying the results may reflect a “productivity boom” and “a pretty big decline in the labor force.”

Which industries are hiring?

Employment in health care again drove payroll gains in January, adding 82,000 jobs. The social assistance sector added 42,000 and construction added 33,000.

After a year characterized by mass layoffs, the federal government once again shed jobs, cutting 34,000 in January as some workers who accepted deferred resignation offers last year came off payrolls. Employment in financial activities declined by 22,000.

The BLS said employment was little changed in other industries, including manufacturing, wholesale and retail trade, and hospitality.

How is the job market overall?

The BLS reported there were 7.5 million unemployed workers and 6.5 million job openings in December, meaning there were nearly one million more potential job seekers than available positions.

Unemployment benefit claims are up, and a Feb. 5 Challenger, Gray & Christmas report revealed employers announced 108,435 job cuts in January, the most for the first month of a year since 2009.

In 2025, economists described the labor market as a “low-hire, low-fire" environment, as some American workers clung to their jobs in fear they would struggle to find new ones. That caution showed up unevenly across industries. Job seekers in health care may have been able to find work, while opportunities in other sectors were more limited. (Source: USA Today)