The U.S. Bureau of Labor Statistics (BLS) released a report on Wednesday, January 11th, showing that 130,000 non-farm jobs were added in January, far exceeding the Dow Jones’ previous prediction of 55,000 and easing concerns about the U.S. labor market conditions. The unemployment rate dropped to 4.3%, lower than the previous prediction of 4.4%.
In terms of specific industries, the healthcare industry led the job growth, adding 82,000 jobs in January; the social assistance industry added 42,000 jobs; and the construction industry added 33,000 jobs.
Federal employment numbers continued to decline in January, with a reduction of 34,000 jobs; and the financial activities industry saw a decrease of 22,000 jobs.
Average hourly wages, closely watched as an inflation indicator, increased by 0.4% in January to $37.17. This represents a 3.7% increase compared to the previous year.
After the announcement, U.S. stock futures saw a strong uptick. The S&P 500 index futures and the tech-heavy Nasdaq index futures rose by 0.4% and 0.5%, respectively, having previously risen by 0.1%.
President Trump commented on his social media platform “Truth Social,” saying, “The employment data is outstanding, far better than expected! The United States should be paying much lower interest on borrowing (issuing government debt)! We are once again becoming the most powerful country in the world, so we should pay the lowest interest rates. This will save at least $1 trillion in interest costs annually – not only achieving a balanced budget, but even generating a surplus. America’s golden age is right in front of us!!!”
Due to the partial federal government shutdown that ended on February 3rd, this employment report was delayed by almost a week before being released.
According to CNBC, Heather Long, Chief Economist at the Navy Federal Credit Union, said, “There was a surge in the job market in January.”
“The unexpected strength in January’s job growth was mainly due to the growth in the healthcare and social assistance industries. This is enough to stabilize the job market and slightly reduce the unemployment rate. While the job market is still stagnant, it is trending towards stability. This is an encouraging sign for the new year, especially after experiencing a hiring decline in 2025,” said Long.
Reuters reported that Lindsay James, Investment Strategist at Quilter, stated, “This may keep the Federal Reserve from changing interest rates until there is evidence indicating a need for other measures. Meanwhile, with President Trump continuing to demand a rate cut from the Federal Reserve in the near term, this could put pressure on the incoming Fed chair, Kevin Warsh.”