The United States labor market added more jobs than expected in January, according to a report from the Bureau of Labor Statistics released on Wednesday. Nonfarm payrolls rose a seasonally adjusted 130,000 for the month, smashing the Dow Jones estimate of 55,000.
The unemployment rate fell to 4.3%, down a tenth of a percentage point from December. Stock futures and Treasury yields were both up following the release.
President Donald Trump praised the report, calling the figures “far greater than expected,” and argued that the data should prompt the Federal Reserve to lower interest rates. “The United States of America should be paying much less on its borrowings,” Trump said, contending that lower rates could reduce federal interest costs by up to $1 trillion a year.
The Federal Reserve held interest rates steady in January for the first time since July, citing continued labor market strength even as inflation remains above its 2% target.
Job growth was concentrated in healthcare, social assistance, and construction. Healthcare added 82,000 positions, mainly in ambulatory services. Federal government employment continued to decline, with 34,000 employees accepting deferred resignation offers coming off payrolls. Financial services recorded the largest losses among private industries.
The stronger-than-expected report stood in contrast with comments made earlier in the week from National Economic Council Director Kevin Hassett, who suggested job gains might slow. “One shouldn’t panic if you see a sequence of numbers that are lower than you’re used to,” Hassett told CNBC, citing slower population growth and rising productivity.
The Wednesday report also included downward revisions to prior estimates. The Bureau revised its 2025 payroll growth figure from 584,000 to 181,000 after comparing survey data with employer payroll records.
The report was delayed by one week due to the partial government shutdown that ended on February 3.
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