US adds 130,000 jobs in January, outpacing estimates
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The news: The US added 130,000 jobs in January, beating expectations, while the unemployment rate fell, suggesting the labour market is steadying at the beginning of 2026.
The numbers: Employers added 130,000 jobs last month according to data from the Bureau of Labor Statistics released Wednesday, coming in higher than the seasonally adjusted 48,000 jobs added in December. The December figure was revised slightly lower.
Economists polled by the Wall Street Journal were anticipating 55,000 new jobs in January.
The US unemployment rate fell to 4.3% from 4.4% the month prior.
US Treasuries slumped on the news, after the strong data prompted traders to pare back expectations of interest rate cuts this year. Yield across maturities lifted, with the two-year treasury climbing almost eight basis points to 3.53%. Traders have priced in the Federal Reserve’s next rate cut in July, from June previously.
The context: The Labor Department data was initially scheduled for release on 6 February but was delayed due to the partial government shutdown.
The data signals that the labour market is stabilising after 2025 saw rising unemployment and slow hiring, making it harder for unemployed workers and new graduates to find their footing amid drawn out job searches.
Uncertainty tied to US President Donald Trump’s ever-evolving trade tariffs made employers hesitant to begin new hiring activity.
Healthcare, social assistance and construction were the sectors that added the most new jobs in January, while federal government and financial activities lost 34,000 and 22,000 jobs respectively.
The sources: Bureau of Labor Statistics, WSJ, Bloomberg
