US adds 130,000 jobs in January, unemployment falls to 4.3%

The report was originally scheduled for release last Friday, but was delayed due to the partial government shutdown. Additionally, revisions were made to previous months, which found employment in November and December combined was 17,000 jobs lower than initially reported.

According to the report, private payrolls rose by 172,000, while government employment declined by 42,000, including 34,000 federal and 18,000 state positions. Local governments added 10,000 jobs.

Industry breakdowns showed manufacturing added 5,000 jobs, a surprise after experts had predicted the sector would see a loss. Healthcare firms contributed 81,900 new positions, and construction added 33,000. The financial sector cut 22,000 jobs.

“Markets may have been expecting a downshift in today’s numbers after last week’s soft data, but the jobs market hit the gas pedal instead. Today's data shows an acceleration in employment that was strong enough to drive unemployment lower — vindication for Chair Powell's holding pattern," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.

The Federal Reserve kept interest rates steady at its January meeting after three consecutive cuts at the end of 2025. Fed Chair Jerome Powell said the central bank would “let the data speak to us” amid ongoing debate over potential rate cuts. According to Fox Business, the market predicts that rates will continue to be paused by the Fed at its next policy meeting in March.