January Jobs Report: U.S. Adds 143,000 Jobs

The U.S. labor market slowed in January, adding 143,000 jobs, a notable drop from December’s revised 307,000 job gains. This moderation in growth aligns with the broader trend seen in 2024, where employment gains averaged 166,000 jobs per month.

The unemployment rate edged down slightly to 4.0%, reflecting a marginal improvement in labor market conditions. Key sectors driving growth included healthcare, retail trade, and social assistance, while mining, quarrying, and oil and gas extraction experienced notable declines.

Is the U.S. Job Market Growing?

January’s job growth signals a slower, yet steady, expansion of the labor market. Healthcare, retail trade, and social assistance remained key drivers of employment, reinforcing demand in essential services.

However, the drop in overall job gains compared to the previous month suggests a cooling labor market, with industries like mining and energy seeing job losses. The slight dip in the unemployment rate offers a positive indicator, though challenges such as long-term unemployment and labor force participation remain largely unchanged.

U.S. Unemployment Rates by Group

• Adult women: 3.7% (down from 3.8%)
• Adult men: 3.7% (unchanged)
• Teenagers: 11.8% (down from 12.4%)
• Whites: 3.5% (down from 3.6%)
• Blacks: 6.2% (up from 6.1%)
• Asians: 3.7% (up from 3.5%)
• Hispanics: 4.8% (down from 5.1%)

Key Employment Statistics for January 2025

• The number of long-term unemployed (jobless for 27 weeks or more) remained steady at 1.4 million, now accounting for 21.1% of the unemployed.
• Part-time employment for economic reasons edged up slightly to 4.5 million, compared to 4.4 million in December.
• Average hourly earnings for all employees on private nonfarm payrolls rose by 17 cents to $35.87, reflecting a 4.1% year-over-year increase.

Sectors with Notable Job Trends in January

Healthcare

Healthcare continued its steady growth in January, adding 44,000 jobs, with gains concentrated in hospitals (+14,000), nursing and residential care facilities (+13,000), and home health care services (+11,000).

The consistent expansion in healthcare highlights the sector’s sustained demand for skilled professionals, particularly in patient care and long-term support services.

This trend reflects the ongoing need for healthcare infrastructure and workforce capacity as populations age and medical advancements extend patient care options.

Retail Trade

Retail trade saw an increase of 34,000 jobs, with the majority of gains occurring in general merchandise retailers (+31,000) and furniture and home furnishings retailers (+5,000).

However, not all areas of retail experienced growth, as electronics and appliance retailers saw a decline of 7,000 jobs.

The mixed performance in retail suggests a shifting landscape where consumer spending patterns continue to evolve, impacting specific segments of the industry.

Social Assistance

The social assistance sector added 22,000 jobs, with the majority of growth in individual and family services (+20,000) and community food, housing, and emergency relief services (+4,000).

This increase underscores the rising demand for social support programs and essential services that aid vulnerable populations.

As economic uncertainties persist, social assistance remains a key area of job expansion, reflecting a growing emphasis on community-based resources.

Government

Government employment continued its upward trend, adding 32,000 jobs, consistent with its 2024 monthly average of 38,000.

The stability in government hiring reflects ongoing public sector investments and workforce expansions at various levels of government.

As government agencies work to fill key roles, these gains reinforce the importance of stable employment opportunities within the sector.

Mining, Quarrying, and Oil & Gas Extraction

The mining, quarrying, and oil and gas extraction sector saw a notable decline, losing 8,000 jobs, with the majority of losses concentrated in support activities for mining.

This contraction indicates potential slowdowns in resource extraction and related industries, which have experienced fluctuations due to global market trends and regulatory shifts.

While energy and resource industries remain critical to economic infrastructure, these job losses highlight the volatility within the sector.

January Jobs Report Summary

January’s job market reflected a moderating pace of growth, with 143,000 new jobs — lower than the previous two months but still consistent with 2024’s average job growth.

Healthcare, retail trade, and social assistance remained strong, while mining and energy sectors showed signs of contraction.

Encouragingly, the unemployment rate dipped to 4.0%, suggesting a stable labor market despite a slowdown in hiring.

Meanwhile, revisions for November and December revealed stronger gains than initially reported, with 100,000 additional jobs added across those months.