January Jobs Report: U.S. Adds 130,000 Jobs

In January 2026, the U.S. economy added 130,000 nonfarm payroll jobs, a stronger showing than December and a modestly positive start to the new year.

Revisions to prior months trimmed job gains slightly. November’s total was revised down to +41,000, and December was revised down to +48,000, bringing combined employment 17,000 lower than previously reported.

The unemployment rate held at 4.3%, with 7.4 million Americans unemployed, according to the U.S. Bureau of Labor Statistics.

Is the U.S. Job Market Growing?

January’s 130,000-job gain marks an improvement from the muted pace seen through much of 2025, when payroll growth averaged just 15,000 jobs per month.

Growth was concentrated in healthcare, social assistance, and construction. However, continued losses in federal government and financial activities tempered overall momentum.

While hiring remains positive, the labor market is expanding at a measured pace rather than accelerating.

U.S. Unemployment Rates by Group – January 2026

• Adult women: 4.0%
• Adult men: 3.8%
• Teenagers: 13.6%
• Whites: 3.7%
• Blacks: 7.2%
• Asians: 4.1%
• Hispanics: 4.7%

Teen unemployment declined notably in January, while other major demographic groups saw little change. Compared to a year ago, overall unemployment remains slightly higher.

Key Employment Statistics for January 2026

• Long-term unemployed (27 weeks or more): 1.8 million, representing 25.0% of all unemployed (up 386,000 over the year).
• Average hourly earnings: Rose by 15 cents to $37.17, up 3.7% over the past year. Production and nonsupervisory employees earned $31.95, up 12 cents in January.
• Average workweek: Increased slightly to 34.3 hours. Manufacturing hours edged up to 40.1 hours, while production and nonsupervisory employees averaged 33.8 hours.
• Labor force participation rate: 62.5%
• Employment-population ratio: 59.8%

Sectors with Notable Job Trends in January

Healthcare

Healthcare added 82,000 jobs in January, a significant acceleration compared to its 2025 monthly average of 33,000.

Gains were strongest in ambulatory healthcare services (+50,000), hospitals (+18,000), and nursing and residential care facilities (+13,000).

The sector continues to be a primary driver of employment growth.

Social Assistance

Social assistance employment increased by 42,000, largely due to growth in individual and family services (+38,000).

The sector remains a consistent contributor to overall payroll gains.

Construction

Construction added 33,000 jobs, with most gains in nonresidential specialty trade contractors (+25,000).

After being essentially flat in 2025, construction showed renewed strength to begin the year.

Federal Government

Federal government employment declined by 34,000 in January.

Since peaking in October 2024, federal employment is down 327,000 jobs, a 10.9% decline, as deferred resignation programs continue to reduce payrolls.

Financial Activities

Financial activities lost 22,000 jobs in January and are down 49,000 since May 2025.

Insurance carriers and related activities accounted for a significant share of the monthly decline.

January Jobs Report Summary

The January 2026 jobs report signals steady — though not rapid — momentum in the labor market.

Hiring picked up compared to late 2025, driven by strong gains in healthcare, social assistance, and construction.

Unemployment held steady at 4.3%, wage growth remained solid at 3.7% year over year, and average hours ticked slightly higher.

However, continued federal job reductions and weakness in financial activities highlight ongoing sector imbalances.

As 2026 begins, the labor market appears stable but still short of the robust growth seen in previous expansion years.

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