US Adds 130,000 Jobs As Unemployment Ticks Lower

The US labour market delivered a stronger performance than anticipated at the start of the year, with new data showing solid job creation and a slight decline in unemployment.Figures released by the Department of Labor show that employers added 130,000 jobs in January, comfortably surpassing forecasts of 55,000 from economists surveyed by major financial outlets. It marks the strongest monthly hiring figure since the final quarter of 2024.

The unemployment rate eased to 4.3 percent from 4.4 percent in December, signaling modest improvement in overall labour conditions.

President Donald Trump praised the figures, describing them as evidence of economic strength while reiterating his call for interest rate reductions.

However, updated revisions to last year’s employment data revealed that overall hiring in 2025 was significantly weaker than initially reported. Average monthly job growth for the year has now been revised to 15,000, down from the earlier estimate of 49,000.

Some analysts argue that policy decisions have influenced the slower hiring pace. Economists point to tighter immigration rules limiting workforce growth, along with tariffs and reductions in federal employment affecting labour demand.

Ahead of the report’s release, White House officials cautioned against overreacting to smaller hiring numbers, highlighting rising productivity driven by artificial intelligence and technological efficiency.

Despite political debate, the latest figures are likely to reinforce the Federal Reserve’s cautious stance on interest rates. After implementing three rate cuts last year, the central bank has kept borrowing costs unchanged since January and is expected to remain patient as it evaluates broader economic trends.

Job gains were concentrated in health care, social assistance, and construction, while federal government payrolls and parts of the financial sector recorded losses. Federal employment has fallen sharply since late 2024, declining by more than 300,000 positions.

Economists say the labour market remains uneven but appears to be stabilizing, with hiring concentrated in a handful of sectors rather than broadly across the economy.