US Nonfarm Payroll Increases by 130,000 in January; Unemployment Edges Down to 4.3%

On Wednesday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment rose by 130,000 in January. The unemployment rate edged down to 4.3% from 4.4% in December.

Growth was led by the following sectors:

• Health care added 82,000 jobs, above an average increase of 33,000 per month in 2025.
• Social assistance continued to trend upward, adding 42,000 positions, reflecting growth in individual and family services.
• Construction added 33,000 jobs, reflecting gains in nonresidential specialty trade contractors. Employment in construction was essentially flat in 2025.

Losses occurred in the following sectors:

• Federal government fell by 34,000, as some federal employees who accepted a deferred resignation offer in 2025 came off payrolls. Since peaking in October 2024, federal government employment has declined by 327,000, or 10.9%.
• Financial activities was down 22,000 and has fallen 49,000 since reaching a recent peak in May 2025. Within the industry, insurance carriers and related activities lost 11,000 jobs over the month.

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; professional and business services; leisure and hospitality; and other services.

Monthly Revisions

Revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for November was revised down by 15,000, from 56,000 to 41,000, and the change for December was revised down by 2,000, from 50,000 to 48,000. With these revisions, employment in November and December combined is 17,000 lower than previously reported.