U.S. Hiring Starts the Year at a Strong Pace

The U.S. economy added 130,000 jobs in January, and the unemployment rate fell to 4.3 percent from 4.4 percent, in a report delayed by a short government shutdown. The peppier-than-expected reading suggests the labor market may be emerging from a period of very slow growth tied to a trade war, an immigration crackdown and a federal government firing spree.

Annual benchmark revisions changed last year’s picture. The economy added only 181,000 jobs in 2025, down from an earlier estimate of 584,000, and the revision lowered total employment by more than one million—the largest annual revision since 2009. Prime-age labor force participation (ages 25 to 54) jumped to 84.1 percent, the highest since 2001.

Health care accounted for more than half of January’s gains with 82,000 positions; construction added 33,000, while the federal government shed 35,000. Average hourly earnings rose 3.7 percent year over year, and the average workweek edged up 0.1 hours to 34.3 hours.

United States

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