US Job Growth Beats Forecasts with 130,000 Rise In Payrolls

U.S. job growth accelerated in January, surpassing expectations, while the unemployment rate declined unexpectedly, signaling renewed stability in the labor market at the start of the year.

Employers added 130,000 nonfarm payroll jobs last month, according to data released Wednesday by the Bureau of Labor Statistics (BLS). The unemployment rate fell to 4.3%, compared with forecasts of 4.4%.

The report had originally been scheduled for release on February 6 but was delayed due to a partial government shutdown.

The stronger-than-expected hiring suggests the labor market may be stabilizing after a sluggish 2025. Revised data show that average monthly job gains last year were just 15,000, sharply lower than the initially reported 49,000.

The January report also included the Bureau’s annual benchmark revision, aligning payroll data with the more comprehensive but less timely Quarterly Census of Employment and Wages (QCEW), which is based on state unemployment insurance tax records.

Those revisions indicated that job growth was approximately 900,000 lower in the 12 months through March 2025 than previously estimated, largely in line with preliminary adjustment signals released earlier.

Following the data release, U.S. equity futures rose, and Treasury yields climbed, reflecting investor reassessment of economic momentum.

While many economists still expect labor market conditions to remain relatively soft in 2026, clearer signals around President Donald Trump’s economic policies and easing borrowing costs could support more consistent hiring in the months ahead.

The stronger wage growth, up 0.4% month-over-month, may also factor into Federal Reserve deliberations, as policymakers continue balancing labor market resilience against inflation concerns.

Overall, January’s report points to a labor market that, while not booming, appears steadier than previously feared.