US Nonfarm Payroll Increases by 143,000 in January; Unemployment Falls to 4.0%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 143,000 in January. This follows an increase of 307,000 jobs in December and is similar to the average monthly increase of 166,000 in 2024.

Increases occurred in the following sectors:

• Health care added 44,000 jobs, compared to an average monthly gain of 57,000 in 2024.
• Retail trade added 34,000 jobs after little net change in 2024.
• Social assistance employment increased by 22,000, in line with its 2024 monthly average of 20,000.
• Government employment continued to trend up, adding 32,000 jobs, slightly below its 2024 monthly average of 38,000.

Employment remained largely unchanged in other major industries, including construction, manufacturing, wholesale trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services.

Mining, quarrying, and oil and gas extraction lost 8,000 jobs in January after little net change in 2024.

The unemployment rate edged down to 4.0%, reflecting annual adjustments to population controls. The number of unemployed people remained at 6.8 million.

Monthly Revisions

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

Total nonfarm payroll employment was revised upward, with November’s gain increasing by 49,000 (from 212,000 to 261,000) and December’s by 51,000 (from 256,000 to 307,000). These revisions add a combined 100,000 jobs to the previously reported totals.