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U.S. employers added 143,000 jobs last month, somewhat fewer than forecast, while unemployment fell to 4 percent and hourly earnings rose.
A chart showing the monthly change in jobs which added 143 thousand in January.
Monthly change in jobs
+800
,000
+600
,000
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,000
+200
,000
’21
’22
’23
’24
+800
,000
,000
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Feb. 7, 2025Updated 1:51 p.m. ET
Can a labor market be hot and cool at the same time? That’s the picture painted by the latest federal hiring figures, which show a step down in job creation last month — as well as a drop in joblessness.
Employers added 143,000 jobs in January, slightly less than expected, the Labor Department reported on Friday. But with large upward revisions to the prior two months and a decline in the unemployment rate to 4 percent, American workers still appear to be in good shape.
“We have robust fundamentals, and relatively moderate hiring, but it’s very judicious,” said Gregory Daco, the chief U.S. economist with the accounting firm EY-Parthenon. “The unemployment rate is historically low, but frozen in the sense that you’re not seeing much churn — businesses are being cautious as to how they manage their work force.”
A line chart of the unemployment rate which declined one tenth a percentage point in January to 4.0 percent.
16
%
Unemployment rate
14
12
10
8
6
4
2
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’20
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’25
16
%
Unemployment rate
14
12
10
8
6
4
2
’19
’20
’21
’22
’23
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’25
Other data bears out that impression: The rate of job openings has sunk below prepandemic levels, as has the share of people quitting. Few people are being laid off, but for those out of work, it’s increasingly difficult to get a job.
For those still employed, pay increases remain respectable. Average hourly earnings rose 4.1 percent over the year — more than economists had forecast, and well above the rate of inflation. Impressive productivity growth over the past year means that such wage increases can be sustained without pushing up prices.
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%
+8
Wages
Inflation
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+4
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’25
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%
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Wages
Inflation
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A chart comparing the previously released monthly change in jobs to revisions that show that jobs grew less in most months.
+$10
million
ORIGINAL
Cumulative change in
jobs since Feb. 2020
+5
REVISED
–5
–10
–15
–20
–25
’20
’21
’22
’23
’24
’25
+$10
million
ORIGINAL
Cumulative change in
jobs since Feb. 2020
+5
REVISED
–5
–10
–15
–20
–25
’20
’21
’22
’23
’24
’25
Education and health
+61,000 jobs
Retail
+34,300
Government
+32,000
Construction
+4,000
Manufacturing
+3,000
Leisure and hospitality
–3,000
Business services
–11,000
