January 2025 Labor Market Exhibited Signs of Moderation.
January's labor market's performance reflects a cooling trend, with job growth slowing compared to previous months. Factors such as adverse weather conditions, including wildfires and snowstorms, may have contributed to this deceleration. Additionally, the Federal Reserve's decision to pause interest rate cuts indicates a cautious approach in response to evolving economic indicators. However, potential challenges loom, including the impact of new tariffs and immigration policies under the current administration, which could influence future labor market dynamics.
The Numbers*:
The U.S. economy added 143,000 jobs in January, falling short of the anticipated 169,000.
The unemployment rate edged down to 4.0%.
There were 7.6M open jobs well below December’s 8.2M.
The labor force participation rate increased to 62.6%.
The number of job quits in the U.S. decreased to 3.2 million.
- Average hourly earnings rose by 0.5% to $35.87.
- Average weekly hours worked decreased to 34.1 hours in January.
- Total hires were 5.5M, while total separations were 5.3M.
- Within separations, layoffs/discharges accounted for 1.8 million.
Industry Trends:
| Industry | January Jobs | Notes |
| Healthcare | + 44,000 | Notable gains in hospitals, nursing and residential care facilities and home health care services. |
| Retail | + 34,000 | Driven by general merchandise retailers and furniture and home furnishings stores. |
| Social Assistance | + 22,000 | Primarily in individual and family services. |
Revisions to prior months' data revealed an additional 100,000 jobs than previously reported, with November's figures adjusted to 261,000 and December's to 307,000.
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* Above represents January 2025 Data
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