U.S. Economy Adds 130,000 Jobs in January; Unemployment Rate Falls to 4.3%

The U.S. economy demonstrated unexpected strength in January 2026, adding 130,000 nonfarm payroll jobs, while the unemployment rate edged down to 4.3%. This data, released by the Department of Labor's Bureau of Labor Statistics (BLS) on Wednesday, February 11, 2026, came in a delayed report that surpassed economists' forecasts. The report offers a mixed picture, highlighting resilience in some sectors alongside significant revisions to previous year's job growth figures.

January Job Gains Exceed Expectations

The 130,000 jobs added in January significantly outpaced the 70,000 to 80,000 jobs that economists had predicted. This stronger-than-anticipated performance suggests a degree of resilience in the labor market. The unemployment rate also saw a slight improvement, falling to 4.3% from 4.4% in December. Average hourly wages increased by 0.4% from December to January.

Sectoral Performance and Notable Revisions

Job growth in January was concentrated in specific sectors:

• Health care: Added 82,000 jobs
• Social assistance: Gained 42,000 jobs
• Construction: Saw an increase of 33,000 jobs
• Manufacturing: Added 5,000 jobs, breaking a 13-month streak of losses

Conversely, some sectors experienced job losses, including the federal government, which shed 34,000 positions, and financial activities, which lost 22,000 jobs. The report also included substantial revisions to prior data, notably reducing the total number of jobs created in 2025. The revised figure for 2025 now stands at just 181,000 jobs, less than half of the previously reported 584,000, making it the weakest year for job growth since 2020.

Context and Economic Implications

The release of the January jobs report was delayed from its original schedule due to a partial government shutdown. This delay added to the anticipation surrounding the figures. While the January numbers were positive, some analysts noted 'uneven' hiring and lingering uncertainty stemming from the muted job growth experienced throughout 2025. The report's strength is seen by some as potentially influencing the Federal Reserve's monetary policy, possibly reducing the immediate pressure for interest rate cuts and increasing the likelihood of extending a pause. Despite the job gains, January also saw a surge in layoffs across the U.S., reaching their highest level for the month since 2009, with major companies like Amazon and UPS announcing significant job cuts.