U.S. payrolls rose by 130,000 in January, more than expected; unemployment down to 4.3%

Job growth was stronger than expected to start 2026, providing some relief to concerns about the state of the U.S. labor market.

Nonfarm payrolls increased by 130,000 for January, above the Dow Jones consensus estimate for 55,000, according to seasonally adjusted figures the Bureau of Labor Statistics released Wednesday. The total also was an improvement over December, which saw a gain of 48,000 after a slight downward revision.

The unemployment rate edged lower to 4.3%, below the forecast to stay unchanged at 4.4% from the prior month. A more encompassing measure that includes discouraged workers and those holding part-time positions for economic reasons slipped to 8%, down 0.4 percentage point from December.

Markets rose following the news, with stock market futures ticking higher. Treasury yields also posted strong gains.

The report, delayed nearly a week by the partial government shutdown that ended Feb. 3, held consistent with a labor market in a low-growth mode, though with only scattered signs of increasing layoffs. January was the best month for payroll growth since December 2024, following a year in which job creation averaged just 15,000 a month.

President Donald Trump touted the numbers as the sign of a strong economy, and again called on the Federal Reserve to lower interest rates.

“GREAT JOBS NUMBERS, FAR GREATER THAN EXPECTED!” Trump posted on Truth Social. “The United States of America should be paying MUCH LESS on its Borrowings (BONDS!). We are again the strongest Country in the World, and should therefore be paying the LOWEST INTEREST RATE, by far.”

In addition to the monthly numbers, the BLS released final benchmark revisions for the period of April 2024 to March 2025. Those numbers saw the initial counts revised lower by a total 898,000 on a seasonally adjusted basis. That was a bit lower than the 911,000 figure for the initial estimate last September but around Wall Street expectations.