The U.S. economy added 130,000 jobs in January and the unemployment rate ticked down to 4.3%. Revisions reduced net job growth in November and December by a combined -17,000 versus prior reports.

Average monthly private-sector job growth was +30K last year. This is the lowest level of growth for an economy that isn't in recession since the so-called "jobless recovery" of 2003.

Total job growth was +73K on average over the three months ended January (strongest since February 2025) and +14K over the prior six months. Private-sector job gains were +103K on a three-month average (highest since Dec 2024) and +62K over six months (best since Apr 2025).

Permanent job loss was little changed in January, at 2 million or 1.17% of the labor force (matching the near-term highs seen in Sept-Oct 2025)

Wage growth has gradually slowed. 12-month wage gains were 3.7% and 3.8%, respectively, for all private sector workers and for production and nonsupervisory workers in January, down from 4% during the year-ago period.

The index of aggregate weekly payrolls for private-sector workers (which combines hiring, wages, and hours) popped in January as all three measures increased. The 12-month change ticked up to 4.8% (from a downwardly revised 3.7% in Dec), the strongest growth since May 2024.

On an unrounded basis, the unemployment rate fell to 4.283% in January, from 4.375% in December. This has completely unwound the rise seen between July and November (from 4.267% to 4.536%). The low for the prior 12 months was January 2025 at 4.022%.

Federal government employment contracted over the 12 months ended January, while private sector employment growth slowed from the 2025 pace.