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White House Ties Softer Job Gains to Deportations as BLS Reports 130,000 January Jobs and Sharp 2025 Revision

Independent analysts say the deportation explanation is not supported by the latest labor data on foreign-born workers.

Overview

  • Bureau of Labor Statistics data show the U.S. added 130,000 nonfarm jobs in January and the unemployment rate eased to 4.3%, topping forecasts for 75,000 jobs and 4.4%.
  • An annual benchmark revision cut estimated job growth for 2025 to 181,000 from a previously reported 584,000, a sizable downgrade that reshapes the recent employment picture.
  • Senior adviser Peter Navarro told Fox Business viewers to lower expectations for monthly gains, calling sub‑100,000 readings a new 'steady state' and asserting, without evidence, that Biden‑era jobs largely went to undocumented workers.
  • National Economic Council Director Kevin Hassett similarly argued that smaller monthly gains could reflect a smaller workforce from 'illegals leaving the country' and urged markets not to overreact.
  • Forbes and economists report no data showing deportations drove the slowdown, noting the foreign-born share of the workforce was virtually unchanged year over year and citing outside estimates that a lower 'breakeven' pace near 40,000 does not validate claims about undocumented workers taking most prior gains.