The U.S. Department of Labor reported that 130,000 jobs were added in January, while the unemployment rate declined to 4.3%, outperforming analysts’ expectations. According to a MarketWatch survey, economists had forecast 55,000 new hires and an unemployment rate of 4.4%.
The report also included significant revisions to previous labor market data. For 2025, net job creation was adjusted to 181,000 positions, sharply lower than the 584,000 previously reported. The department had postponed the release of the report, originally scheduled for late last week, due to the recent partial federal government shutdown.
Job gains were concentrated in healthcare, social assistance, and construction. In contrast, employment declined in the financial sector and within the federal government.
Since returning to office one year ago, President Donald Trump has implemented a plan aimed at reducing the size of the federal administration. From its peak in October 2024, the federal workforce has decreased by 327,000 employees, representing a 10.9% reduction.
“A 4.3% unemployment rate shows that people are still finding jobs and that the economy is not on the brink of recession,” Sam Stovall, analyst at CFRA, told AFP.
However, Stovall noted mixed implications for investors. “It’s both good and bad news. On one hand, it moves us further away from a recession cliff, but on the other, it suggests a delay in the Federal Reserve’s next interest rate cut,” he said.
