US added 130,000 jobs in January, surpassing expectations as 2025 growth is slashed

Labor Market Overview - The US jobs market added 130,000 jobs in January, significantly exceeding economists' expectations of 70,000 job gains [1] - The unemployment rate slightly decreased to 4.3% in January, indicating a cooling from previous months [1] Year-on-Year Comparison - January's job gains were 13,000 jobs less than the 143,000 jobs added in January 2025, but more than double the 50,000 jobs added in December [2] - Total new jobs for 2025 were revised down to 181,000 from an initially reported 584,000, marking the weakest job growth year since the Covid-19 pandemic [2] Economic Context - The report follows a tumultuous year for the US economy, characterized by unstable trade and immigration policies [3] - The jobs report was delayed due to a brief government shutdown, highlighting the impact of political factors on economic reporting [3] Private Payroll and Layoffs - Private payroll growth was only 22,000 jobs in January, below the expected 45,000 jobs, compared to 140,000 jobs gained during the same period last year [4] - US employers announced 108,435 layoffs in January 2026, a 118% increase from January 2025, marking the highest number of layoffs to start a year since 2009 [4] Job Openings and Labor Market Sentiment - Job openings in the US dropped by 386,000 to 6.542 million in December 2025, the lowest level since September 2020 [5] - Consumer sentiment, as measured by the University of Michigan, was 57.3 in February, reflecting a slight improvement but still over 11% lower than the same period in 2025 [8] Federal Reserve and Inflation - The weakening labor market has not prompted the US Federal Reserve to lower interest rates, as inflation remains unstable [6] - The central bank is cautious about price increases, with inflation recorded at 2.7% in December [7]