The United States added 130,000 jobs in January, surpassing economists’ expectations and marking the strongest monthly increase in more than a year, even as sweeping revisions sharply reduced estimates of overall job growth in 2025.
The unemployment rate fell to 4.3% from 4.4% in December, according to data released Wednesday by the Labor Department, offering signs of short-term stability in a labor market that has faced months of slowing momentum.
Economists had forecast job gains of around 70,000 for January, with estimates ranging widely from a loss of 10,000 to an increase of 135,000 positions.
The January total more than doubled December’s revised gain of 48,000 jobs and exceeded the 50,000 threshold some officials suggested was consistent with slower labor force growth.
Healthcare led hiring with 82,000 new positions across ambulatory services, hospitals, and residential care facilities, while social assistance added 42,000 jobs.
Construction employment rose by 33,000, driven by nonresidential specialty trade contractors, and professional and business services increased by 34,000.
However, the financial sector shed 22,000 jobs, and federal government employment declined by 34,000, contributing to a cumulative drop of 327,000 federal positions since October 2024.
Other indicators pointed to softer conditions, with job openings falling by 386,000 in December to 6.542 million, the lowest level since September 2020, and employers announcing 108,435 layoffs in January, the highest start to a year since 2009.
Despite January’s gains, benchmark revisions showed that only 181,000 jobs were added in 2025, down sharply from the previously reported 584,000 and well below the 2 million jobs added in 2024.
Annual revisions also indicated 862,000 fewer jobs were created in the 12 months through March 2025 than earlier estimated.
President Donald Trump welcomed the January report, writing: “Just in: GREAT JOBS NUMBERS, FAR GREATER THAN EXPECTED!”
He added, “WOW! The Golden Age of America is upon us!!!”
Federal Reserve officials have kept interest rates unchanged at 3.50% to 3.75% as they monitor inflation, which stood at 2.7% in December.
Economists cautioned that January’s hiring surge may not signal a sustained shift, noting that slower population growth and reduced labor force participation could limit future gains.