The Bureau of Labor Statistics has released its January 2025 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- Unemployment Rate Drops: The unemployment rate edged down to 4.0%, signaling continued labor market stability.
- Upward Revisions for Prior Months: November and December job numbers were revised up by 100,000 total, indicating stronger job growth than initially reported.
- Solid Job Gains in Key Sectors:
- Health Care: Added 44,000 jobs, with strong growth in hospitals, nursing and residential care, and home health care services.
- Retail Trade: Increased by 34,000 jobs, driven by gains in general merchandise and home furnishings retailers.
- Social Assistance: Added 22,000 jobs, with most gains in individual and family services.
- Wage Growth Accelerates: Average hourly earnings rose by 0.5% (17 cents) in January, marking a 4.1% annual increase—a strong sign for workers.
The good news is:
- Payroll Growth Continues: 143,000 new jobs were added, in line with expectations and only slightly below the 2024 monthly average of 166,000.
- Stable Labor Market Participation: The labor force participation rate held steady at 62.6%, avoiding a decline.
The bad news is:
- Job Growth Slowing: January’s 143,000 new jobs are below the 2024 average of 166,000, suggesting a cooling labor market.
- Flat Work Hours: The average workweek declined slightly to 34.1 hours, signaling potential softening in labor demand.
- Revisions to 2024 Data: The March 2024 employment benchmark was revised downward by 589,000, meaning past job growth was overstated.