The U.S. labor market shows signs of hiring momentum to kick off 2026.
The U.S. economy created 130,000 new jobs in January, suggesting employment conditions could be improving following months of a sluggish labor market.
Economists had anticipated 70,000 new jobs.
The unemployment rate also slipped to 4.3 percent from 4.4 percent in December—lower than the consensus forecast—according to new data from the Bureau of Labor Statistics released on Feb. 11.
The U.S. labor market could be turning a corner, as hiring momentum accelerated at the start of the year.
In January, the economy added 130,000 jobs, according to new, delayed BLS data released on Feb. 11. This was up from the previous month’s downwardly adjusted 48,000.
The consensus estimate suggested the country had created 70,000 positions to kick off 2026.
The unemployment rate fell to 4.3 percent, from 4.4 percent in December, the bureau reported.
This also came in below the market forecast of 4.4 percent.
Health care was the top industry for job creation, adding 82,000 roles last month. Social assistance payrolls also increased by 42,000. Both industries have accounted for a sizable share of payroll growth over the past year, with experts attributing growth to an aging population.
Construction added 33,000 jobs, a strong start for a sector that saw little employment growth last year.
Federal government employment fell by 34,000, “as some federal employees who accepted a deferred resignation offer in 2025 came off federal payrolls,” the bureau said.
Federal payrolls are down by 327,000 since reaching a peak in October 2024.
As a result, the private sector created 172,000 new jobs, far higher than the 70,000 forecast.
Officials confirmed that the severe winter storms had little impact on the collection of the household and establishment survey.
Average hourly earnings surged at a higher-than-expected pace of 0.4 percent in January, up from the downwardly revised 0.1 percent in December. On a 12-month basis, average hourly earnings were unchanged at 3.7 percent, also higher than forecasts.
Average weekly hours ticked up to 34.3, while the labor force participation rate rose to 62.5 percent.
Full-time employment rocketed by 582,000, while part-time was little changed.
By Andrew Moran
