U.S. hiring starts the year at a strong pace

The U.S. economy opened 2026 with stronger hiring: employers added 130,000 jobs in January and the unemployment rate fell to 4.3 percent. The Labor Department released the report on Wednesday after a short government shutdown delayed its publication, and annual benchmark revisions sharply lowered 2025’s job gains to 181,000 from an earlier estimate of 584,000.

Job growth was concentrated in a few areas. Health care added 82,000 positions and construction 33,000, while the federal government shed 34,000 jobs. Transportation and warehousing, information and financial activities lost jobs, temporary help services added 9,000, prime-age labor force participation rose to 84.1 percent and average hourly earnings were up 3.7 percent year over year; the average workweek edged up to 34.3 hours.

Black unemployment fell to 7.2 percent from a peak of 8.2 percent in late 2025. Markets reacted to the stronger-than-expected report: the S&P 500 opened higher and longer-dated Treasury yields moved up.

United States

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