Employers added 143,000 jobs in January amid a slowdown in the labor market
Employers around the U.S. added 143,000 jobs in January, as the Los Angeles wildfires and colder-than-expected weather across much of the country dampened hiring at the start of 2025.
The numbers
The economy was expected to add 170,000 jobs last month, while the unemployment rate was forecast to remain at 4.1%, according to economists polled by FactSet.
On Friday, the Bureau of Labor Statistics said the nation’s unemployment rate edged down to 4%, versus 4.1% in December.
What it means
The January employment figures show a slowdown in hiring from December, when employers added 307,000 new jobs. Still, the 143,000 new jobs in January are not far off from the average monthly gain of 166,000 in 2024, according to the Bureau of Labor Statistics.
Employers in the health care, retail and social assistance industries added new hires last month, although employment declined in mining, quarrying and the oil and gas extraction industries, the BLS said on Friday.
Although the latest data indicates the labor market remains solid, it also means borrowing costs for consumers and businesses are likely to stay higher longer. At its January meeting, the Federal Reserve held its benchmark rate unchanged, hitting the pause button on a series of rate cuts it started last fall.
At that meeting, Fed Chair Jerome Powell said the Fed wasn’t in a rush to cut rates again because the U.S. economy is “in quite a good place,” citing growing GDP and solid job gains.
—This is a developing story and will be updated.
