The US economy added 143,000 jobs in January, fewer than expected

The Bureau of Labor Statistics published January employment data on Friday.

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The US economy added 143,000 jobs in January, missing the forecast of 169,000.Unemployment unexpectedly fell from 4.1% in December to 4%.The new jobs report included revisions to past job growth figures.

The US had disappointing job growth in January but a welcome drop in unemployment.

The economy added 143,000 jobs, below the forecast of 169,000. However, unemployment was expected to be 4.1% again but declined to 4%.

“Job gains occurred in health care, retail trade, and social assistance,” a Bureau of Labor Statistics news release said on Friday. “Employment declined in the mining, quarrying, and oil and gas extraction industry.”

December’s job growth was revised from 256,000 to 307,000. November’s gain was also revised, from 212,000 to 261,000.

It is typical for the monthly jobs report to include revisions for the previous two months of data.

The new jobs report brings in the BLS’ annual revisions to previous job creation figures based on updated data from businesses. That includes revisions for 2024 and other recent years.

A majority of months in 2024 saw smaller job gains than previously reported.

The labor force participation rate ticked up from 62.5% to 62.6%. The employment-population ratio also ticked up from 60% to 60.1%.

Year-over-year wage growth was steady. Average earnings increased from $34.47 an hour in January 2024 to $35.87 an hour this past January. That’s a 4.1% increase, same as December’s increase.

Noah Yosif, chief economist at the American Staffing Association, said earlier this week that “labor market momentum in 2025 will depend on two key trends — lower labor costs for employers and higher confidence among employees.”

Yosif added that “labor costs remain much too high for employers, and this week’s quits numbers show that employees are still not confident in their prospects of finding a new position.” Quits have been fairly steady and low compared to the Great Resignation, data up to December showed.

The next Federal Open Market Committee meeting, at which members will decide what to do with interest rates, is scheduled for mid-March. After the new jobs report, CME FedWatch showed a 91.5% chance of a hold in March, slightly up from the 85.5% chance earlier Friday morning. More economic data will be published before the meeting.

“With our policy stance significantly less restrictive than it had been, and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Fed chair Jerome Powell said after the January FOMC meeting.

Markets were largely unaffected after the report. Stock futures barely moved, and bond yields ticked slightly up, suggesting that investors don’t see the report as having too much of an impact on the Fed’s plans for the rest of the year.

This is a developing story. Please check back for updates.