US economy added 130,000 jobs in January, unemployment falls to 4.3%

Rachel Barber, USA TODAY

Wed, February 11, 2026 at 10:37 PM GMT+9 3 min read

U.S. employers added 130,000 jobs in January, the Bureau of Labor Statistics said Feb. 11, and the agency’s revisions to prior monthly data indicate the labor market was even weaker in 2024 and 2025 than previously estimated.

The unemployment rate fell to 4.3%, after falling from 4.6% in November to 4.4% in December. The report’s release, originally scheduled for Feb. 6 and delayed due to a short government shutdown, follows several other reports that have reignited concerns about a labor market still adapting to tariffs, an immigration crackdown limiting the supply of workers, and employers’ adoption of artificial intelligence.

Ahead of the report’s release, National Economic Council Director Kevin Hassett told CNBC on Feb. 9 that people should expect “slightly smaller jobs numbers,” saying the results may reflect a “productivity boom” and “a pretty big decline in the labor force.”

“One shouldn’t panic if you see a sequence of numbers that are lower than you’re used to because, again, population growth is going down, and productivity growth is skyrocketing,” Hassett said. “It’s an unusual set of circumstances.”

NEW YORK, NEW YORK - JANUARY 09: A ‘now hiring’ sign is displayed in a business’s window in Manhattan on January 09, 2026, in New York City. (Photo by Spencer Platt/Getty Images)

How is the job market overall?

The BLS reported there were 7.5 million unemployed workers and 6.5 million job openings in December, meaning there were nearly one million more potential job seekers than available positions. Unemployment benefit claims are up, and a Feb. 5 Challenger, Gray & Christmas report revealed employers announced 108,435 job cuts in January, the most for the first month of a year since 2009.

In 2025, economists described the labor market as a “low-hire, low-fire" environment, as some American workers clung to their jobs in fear they would struggle to find new ones. That caution showed up unevenly across industries. Job seekers in healthcare, which proved to be an engine of steady job growth, may have been able to find work, while opportunities in other sectors were more limited.

Jeff Bonci, who serves as The Planet Group’s President of Accounting & Finance Staffing, said the hiring slowdown reflects a “timing and caution issue.”

“Many companies paused hiring decisions late in Q4 and carried that conservatism into January as they waited on finalized budgets, interest rate clarity, and economic signals,” Bonci said in a statement to USA TODAY. “Looking ahead, we expect hiring activity to pick up as budgets unlock and companies move forward with targeted, skills-based hiring rather than large headcount expansions.”

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Will the Fed cut rates in March?

Concerns about the job market prompted the Federal Reserve to cut rates three times late last year, but policymakers opted to hold rates steady at its most recent meeting Jan. 28.

Explaining the decision, Chair Jerome Powell said while job gains have remained low, the unemployment rate had shown “some signs of stabilization” and the outlook for economic activity had improved. He added, however, that because labor force participation and demand had both softened, it was “a difficult time” to read the job market.

Two members of the rate-setting committee, Stephen Miran and Christopher Waller, dissented from the January decision, preferring another quarter-point cut. Waller said he expected data revisions to reveal there was “virtually no growth” in payroll employment last year.

"Zero. Zip. Nada. Let this sink in for a moment—zero job growth versus an average of almost 2 million for the 10 years prior to 2025. This does not remotely look like a healthy labor market,” Waller said in a statement, adding that planned 2026 layoffs create a significant risk of “substantial deterioration” in the labor market this year.

As of Feb. 10, a majority of Fed watchers predict policymakers will continue to hold rates steady after their next meeting in March.

This is a developing story and will be updated.

Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_

This article originally appeared on USA TODAY: US economy added 130,000 jobs in January, unemployment at 4.3%

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