The US added 130,000 jobs in January, about double analyst expectations, but annual revisions sharply lowered monthly gains for 2025 by nearly 70pc.
"January's pick-up in payrolls is mostly due to unusually mild weather in the first half of the month … and a one-time jump in healthcare jobs," Pantheon Macroeconomics said in a note.
Payroll employment for 2025 was revised lower to gains of 15,000/month from a prior 49,000/month reported in January, according to the Labor Department. With the annual benchmark revisions, total employment growth for 2025 was revised down to 181,000 from a prior 584,000.
US president Donald Trump's first year back in office was marked by widespread cuts to the Federal government, an aggressive campaign to expel illegal immigrants and trade wars which made it difficult for companies to make long-term hiring and investment plans.
Still, increased productivity, along with solid consumer spending, have enabled the economy to continue growing as the labor market weakens.
Job gains for December and November were revised lower by a combined 17,000, with December lower by 2,000 at 48,000.
Federal government employment fell by 34,000 in January and is down by 327,000, or 10.9pc, since reaching a peak in October 2024.
Manufacturing added 5,000 jobs in January after several months of declines. Healthcare added 82,000 jobs and social assistance added 42,000 jobs. Construction added 33,000 for the month. Oil and gas extraction shed 1,200 jobs.
Average hourly earnings rose by 3.7pc in January from a year earlier.
Unemployment edged lower to 4.3pc in January from 4.4pc the prior month.
CME's FedWatch tool placed the odds of a Federal Reserve quarter point rate cut at its March meeting at 5.9pc after Wednesday's report, down from 20pc Tuesday.
