NEW ORLEANS - U.S. employers added 143,000 nonfarm payroll jobs in Jan. according to the Bureau of Labor Statistics, even though economists had expected about 170,000 new jobs. Upward revisions to Nov. and Dec. 2024 numbers—adding roughly 100,000 extra jobs—helped keep total 12‐month gains at about 2 million jobs.
Private‐sector data also point to a strong labor market. According to the ADP National Employment Report, which uses different methodologies than the government, U.S. businesses created 183,000 new private-sector jobs in Jan. which is above forecasts of 150,000.
In a statement on the jobs report, National Association of Realtors Chief Economist Lawrence Yun said, “The number of unemployed declined by 35,000 in January, bringing the unemployment rate down to 4.0%. In one measure, payroll jobs rose by 143,000, which is based on company responses and is a bit light. In alternative measures, by asking people directly about their employment status, job additions rose by a whopping 2.7 million in a single month. The impact and interpretation do not differ that much. Both measures show roughly 2 million job gains over the 12‐month cycle, which is a healthy economic expansion condition,” he said.
The strong stock market suggests continued factory expansion and increased hiring. “Wages are rising across the board to account for rising consumer price inflation and extra productivity,” said Yun. “The construction industry needs workers, who are paid $39.07 per hour, compared to $22 in hotel and $25 in retail trade.”
With average hourly earnings increasing by 0.5 percent from Dec. 2024 and 4.1 percent over the past year, prices of goods and services are rising. But the increase in average hourly earnings also shows that employers are competing for workers in a tight labor market.
Revisions to past months’ figures and updated population estimates—which added 2.9 million people (including 2.1 million new labor force participants)—have also played a role in keeping the unemployment rate low at 4.0 percent. The Bureau of Labor Statistics noted that severe winter weather and California wildfires had “no discernible effect” on job numbers.
“Even though job growth in Jan. was below forecast, both the official and alternative measures confirm that we have a healthy expansion over the past 12 months,” Yun added.
Analysts now expect the Federal Reserve to keep interest rates unchanged for the time being. They say that even though hiring is slowing from its post-pandemic pace, the steady wage growth and strong overall job gains point to a labor market that is growing at a sustainable pace.
