U.S. adds 130,000 jobs in January, unemployment 4.3%, defying expectations

The unemployment rate sat at 4.3%, which is slightly lower than December unemployment at 4.4%. 

The health care sector added 82,000 jobs in January, a significant contributor to the overall growth in the month. Ambulatory services added 50,000, hospitals increased by 18,000 and nursing and residential care facilities added 13,000 jobs within the healthcare sector. 

Social assistance employment increased by 42,000 in January, with gains primarily coming from individual and family services. 

Heather Long, chief economist at Navy Federal, said the report indicated at "January job surge" that was "way above expectations."

The construction sector followed close behind by adding 33,000 jobs in January. 

The federal government lost 34,000 jobs in January. The Bureau said the decline was due to federal employees who accepted deferred resignation offers in 2025 but were only removed from payrolls in January.

Since its peak in October 2024, federal government employment has decreased by 327,000 or 10.9%. 

Overall, the unemployment rate remained steady from 2025. Over the course of 2025, unemployment rose from 4% to 4.4%. 

Some economists praised the Trump administration for the reports added numbers. 

"Trump was handed an economy that was losing private sector jobs and adding [government] payrolls, but he successfully flipped the script, and one year later its all private sector growth while cutting [government] jobs," said economist E.J. Antoni.