Wages strengthened, with average hourly pay rising 0.4% monthly and 3.7% annually, supporting consumer spending
US employers added 130,000 jobs in January, more than double the 55,000 economists expected, offering relief after months of sluggish hiring.
The Bureau of Labor Statistics said payroll gains also topped December’s revised 48,000, making January the strongest month since late 2024.
According to the data released yesterday, the US also saw the unemployment rate drop to 4.3% from 4.4%.
The numbers are a stark contrast to senior White House trade advisor Peter Navarro’s caution to the public on Tuesday, when he had asked the public to dial back expectations, citing deportations of immigrants working in the country illegally.
Hiring remained concentrated in a few sectors. Health care added 82,000 jobs, the largest monthly gain since 2020, and social assistance gained 42,000 jobs. Construction rose by 33,000, and manufacturing added 5,000 jobs, its first monthly increase in more than a year.
A broader measure that includes discouraged and part-time workers fell to 8%, down 0.4 percentage point.
Meanwhile, federal payrolls dropped 34,000, and financial activities lost 22,000 positions.
Wages strengthened, with average hourly pay rising 0.4% monthly and 3.7% annually, supporting consumer spending.
Despite the rebound, last year’s hiring averaged just 15,000 jobs a month, and benchmark revisions cut nearly 898,000 jobs from prior counts, underscoring lingering weakness.
Stronger household survey data and higher participation suggest stabilization, but traders still expect the Federal Reserve to keep rates steady until midyear.