THE KEY DATA
The US added 130,000 new jobs in January 2026. That is far above analysts’ expectations, which were around 55,000, and well above the 48,000 recorded in December. It marks the strongest month for hiring since December 2024, when the labor market last showed clear signs of strong momentum.
At the same time, unemployment fell to 4.3 percent, while most had expected it to remain steady at 4.4 percent. Labor force participation also rose to 62.5 percent, indicating that more people reentered the job market. Investors always pay close attention to this, since it signals confidence and increased economic activity.
So, is everything fine? Not exactly.
While January delivered a solid number, the overall picture for 2025 was disappointing. The government revised the data, showing that only 181,000 jobs were created for the entire year, down from the initially reported 584,000. That works out to roughly 15,000 per month. This is one of the weakest annual totals in recent years and confirms that 2025 was essentially a year of stagnation for the labor market.
Now, if you are wondering which sectors added the most jobs, here they are:
(a) Healthcare: +82,000
(b) Social assistance: +42,000
(c) Construction: +33,000
Healthcare and social assistance have been steady pillars of job growth for years. What surprised many observers, however, was the strength in construction. As noted by Chris Lau, companies such as PulteGroup and D.R. Horton have seen their stock prices rise due to improved mortgage conditions. Investors are anticipating that homebuilding activity will regain momentum.
On the other hand, the federal government and financial services sectors posted losses of 34,000 and 22,000 jobs respectively. In the public sector, many positions that had been temporarily preserved through deferred resignations were ultimately eliminated. In financial services, reduced activity amid uncertainty over interest rates and investment trends led to staff reductions.
