The U.S. economy added 143,000 jobs, slightly lower than December’s 166,000, and missing analysts’ expectations of 175,000. The unemployment rate dropped to 4.0% from 4.1%, with healthcare and government adding jobs in January, according to the latest employment report from the US Bureau of Labor Statistics.
Healthcare added 44,000 jobs across hospitals, nursing and residential care facilities, and home healthcare services. Retail employment increased by 34,000 jobs, mostly at general merchandise stores. Government employment increased by 32,000 positions, with 9,000 of those in the federal government. More cyclical markets like construction and manufacturing continue to remain soft, with only 7,000 jobs added in January and 73,000 over the past year.
The marginal ticking down of the unemployment rate is reflective of the rate cuts initiated by the Federal Reserve starting from September 2024.
Average hourly earnings jumped 0.5%, up 4.1% year-on-year.