U.S. Adds 143,000 Jobs in January, Falling Short of Expectations

The unemployment rate dipped to 4%, while wage growth and revised payroll data highlight a complex labor market picture.

January's job growth of 143,000 fell below economists' expectations of 170,000, marking the weakest start to a year since 2016.
The unemployment rate decreased from 4.1% to 4%, accompanied by a slight rise in the labor force participation rate to 62.6%.
Revised data added 100,000 jobs to November and December totals, painting a stronger picture of late 2024 hiring trends.
Wages grew 4.1% year-over-year, with a 0.5% monthly increase, the largest since March 2022, signaling continued upward pressure on pay.
Factors such as severe weather and California wildfires likely impacted January's job numbers, while new tariffs and trade policies raise concerns about future hiring.