U.S. Economy Adds 130,000 Jobs in January, Exceeding Expectations; Unemployment Falls to 4.3%
Despite adding 130,000 jobs in January, 2024-2025 payroll revisions cut prior job growth by hundreds of thousands, with the unemployment rate falling to 4.3%, Labor Department said.
- On Wednesday, the U.S. Labor Department reported U.S. employers added 130,000 jobs last month and the unemployment rate fell to 4.3%.
- Government revisions cut into the previously reported 584,000 jobs figure, sharply reducing prior payroll totals and muddling 2024-2025 payrolls.
- Private measures showed weaker hiring as ADP payroll processor reported 22,000 jobs added last week, while Challenger, Gray & Christmas recorded more than 108,000 cuts last month and job openings fell to 6.5 million.
- Analysts say the unemployment rate is providing a better gauge amid revisions and will influence policy and markets, while economists warned revisions could mean the American economy lost jobs in 2025.
- Policy factors including high interest rates, Elon Musk's federal workforce purge last year, and President Donald Trump's immigration policies have cut labor supply and lowered the jobs break-even point.
210 Articles
210 Articles
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US job growth stronger than expected
US employers added more jobs in January than economists had expected, but growth was concentrated in just a few sectors.Outside of health care, hospitality, and government, the economy has been “consistently losing jobs,” ING analysts wrote. “This will do nothing to relieve the pressure on household finances,” meaning consumer sentiment will likely remain dim.Health care has consistently powered job growth, thanks to America’s aging population. …
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