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January Jobs Beat With 130,000 Gain as Unemployment Slips to 4.3%

Large benchmark revisions plus a model update recast recent hiring as weaker, reinforcing expectations for the Fed to extend its rate‑cut pause.

Overview

  • Revisions cut 2025 payroll growth to 181,000 from 584,000 and lowered the year through March 2025 by nearly 900,000, materially changing the recent hiring picture.
  • The BLS updated its birth‑and‑death model for business openings and closures, with economists estimating it could trim as many as 50,000 jobs from recent monthly tallies.
  • January gains were concentrated in health care and social assistance, with construction also up, while federal government payrolls fell by about 34,000 and financial activities lost 22,000 jobs.
  • The report was published a week late due to a short federal shutdown, and unemployment fell even as labor force participation ticked higher, signaling tentative stabilization.
  • Markets pared near‑term rate‑cut bets, with analysts highlighting uneven conditions—fewer job openings and high‑profile layoffs—yet a backdrop that supports the Fed holding policy steady for now.