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This story about the January jobs report is developing and will be updated with more details.
The U.S. economy posted solid job growth in January as employers hired at a steady pace to start 2026, while the Federal Reserve assessed the need for interest rate cuts in the coming months.
What does the jobs report say?
The Department of Labor reported Wednesday that employers added 130,000 jobs in January. That figure was above expectations of economists surveyed by LSEG, who estimated the economy would add 70,000 jobs.
The unemployment rate was 4.3%, slightly lower than economists’ expectations of 4.4%.
Revisions have been made to the last two months’ wages figures, with the November report falling by 15,000, from a gain of 56,000 to 41,000; while December gains were revised down by 2,000, from a gain of 50,000 to 48,000.
All told, employment in November and December was 17,000 jobs lower than previously reported.
Which sectors added or lost the most jobs?
Private payrolls grew by 172,000 jobs in January, well above the LSEG estimate of 70,000.
Government payrolls fell by 42,000 jobs in January, with job losses at the federal (-34,000) and state (-18,000) levels partially offset by gains in local governments (+10,000). The report notes that some federal employees who accepted a deferred layoff offer last year officially left the federal payrolls, while the federal government workforce has fallen by 327,000 jobs since the October 2024 peak, a decline of 10.9%.
The manufacturing sector added 5,000 jobs in January, better than expectations from economists surveyed by LSEG, who estimated a loss of 5,000 jobs.
Healthcare companies added 82,000 jobs in January, with gains in outpatient healthcare (+50,000), hospitals (+18,000), and nursing and residential care facilities (+13,000). The sector’s gains were above the monthly average of 33,000 additional jobs per month by 2025.
Construction companies added 33,000 jobs in January, with gains concentrated on non-residential specialty trade contractors (+25,000). Employment in the construction sector remained virtually stable in 2025.
The financial sector lost 22,000 jobs in January and is 49,000 jobs lower than the recent peak in May 2025. Within the sector, insurance companies and related activities lost 11,000 jobs during the month.
