By THE ALASKA STORY
The US economy added 130,000 jobs in January, according to new data released by the Bureau of Labor Statistics, marking a sharp upward shift after two sluggish months of hiring.
The January gain was far stronger than the previous reports, when the economy added just 50,000 jobs in December and 64,000 in November. The latest numbers came in well above expectations and suggest renewed momentum in the labor market.
The unemployment rate edged slightly lower to 4.3%, down from 4.4% in December. Overall, unemployment has remained relatively steady over the past year, though it rose during 2025 from about 4% to 4.4% before easing again at the start of this year.
Health care was the biggest contributor to January’s job growth, adding 82,000 positions. Ambulatory services accounted for 50,000 of those jobs, while hospitals added 18,000 and nursing and residential care facilities gained 13,000.
Construction hiring also strengthened, with the sector adding 33,000 jobs in January, reflecting continued demand in building and infrastructure-related work.
At the same time, the federal government lost 34,000 jobs during the month. The Bureau said the decline was tied to federal employees who accepted deferred resignation offers in 2025 but were only removed from payrolls in January. Since reaching a peak in October 2024, federal government employment has fallen by 327,000 jobs, a drop of 10.9%.
Full-time wage and salary workers median weekly earnings are $1,204 in 2025.
The latest report reinforces a shift in the composition of job growth. Under the Biden Administration, the country was losing private-sector jobs while expanding government payrolls. January’s numbers show that trend reversing under the Trump Administration, with private-sector growth accelerating as federal employment continues to shrink.
