U.S. employers added 130,000 jobs in January, surpassing economists’ expectations and marking the strongest monthly gain in several months. The unemployment rate dipped slightly to 4.3%, signaling modest improvement in a labor market that has shown signs of stabilization. Health care led job growth with 82,000 new positions, followed by social assistance (42,000) and construction (33,000). Manufacturing posted a modest gain of 5,000 jobs after recent losses. However, federal government employment declined by 34,000 positions, while financial services and transportation also saw job cuts. Wages continued to outpace inflation, with average hourly earnings rising 3.7% over the past year to $37.17. Despite the positive January report, revised data revealed that job growth in 2025 was significantly weaker than previously estimated, with only 181,000 jobs added for the year – far below earlier projections of 584,000.
