U.S. Added 130,000 Jobs in January, Starting Year off on Stronger Footing

Te-Ping Chen

Wed, February 11, 2026 at 10:46 PM GMT+9 3 min read

The U.S. added 130,000 jobs in January, surging past expectations and marking a strong start to the year following a weak year of job growth.

The January numbers from the Labor Department were above the seasonally adjusted 48,000 jobs added in December, which were revised slightly lower. Economists polled by The Wall Street Journal were expecting 55,000 jobs in January.

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The unemployment rate, which is based on a separate survey from the jobs figures, fell to 4.3% from 4.4%.

The Labor Department on Wednesday also sharply cut prior job numbers stretching back nearly two years, the product of previously scheduled revisions. The net result: the U.S. produced only 1.2 million jobs in 2024, versus the previously estimated 2 million. The labor market slowed even more to add just 181,000 jobs last year, versus the previously estimated 584,000.

The Federal Reserve at its last meeting in late January held interest rates steady after three consecutive cuts, with Fed Chair Jerome Powell citing stronger economic growth and tentative signs of labor-market stabilization. Inflation data for January is scheduled for release on Friday.

The U.S. job market has been defined for months by companies holding off on new hires, but not slashing jobs en masse. The situation has made it harder for young graduates to find a foothold and left many unemployed Americans stuck in long, often fruitless job searches.

There have been some high-profile job cuts recently, however, as companies look to reverse the pandemic-era hiring boom. Amazon.com and UPS both announced big job cuts last month.

Rising costs and the uncertainty surrounding President Trump’s shifting tariff policies have made companies hesitant to add employees. Some businesses are refraining from adding staff as they explore whether artificial intelligence could take on more tasks. The White House’s deportation efforts have also made it hard for some businesses to find workers. At the same time, workers aren’t job-hopping for better opportunities the way they would in a more robust labor market, leaving less room for new hiring.

Data through December show last year’s job gains were concentrated in healthcare and social assistance, a sector that tends to grow regardless of the economy’s overall strength. People spend on such services in good times and bad.

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The U.S. job market has been defined for months by companies holding off on new hires, but not slashing jobs en masse. - Lucía Vázquez for WSJ

Other sectors have trimmed jobs. The Trump administration’s efforts to reduce government spending have shrunk the size of the federal workforce through a combination of layoffs and voluntary buyouts. Manufacturing, which the White House hoped to buoy through the adoption of aggressive new tariffs, has also seen job losses mount.

Wednesday’s jobs report was delayed by a brief, partial federal shutdown. A prolonged government shutdown last fall interrupted data releases much more significantly, complicating efforts to gauge the labor market’s underlying strength.

The mood among American consumers has improved slightly in recent months, according to the University of Michigan’s closely watched index of consumer sentiment. Nonetheless, at 57.3, its preliminary February reading remains substantially lower than the 64.7 it clocked a year earlier.

Economists say that tax cuts and investment incentives created by last summer’s sprawling tax-and-spending legislation could boost hiring in 2026, even amid uncertainties surrounding inflation and tariffs.

Write to Te-Ping Chen at Te-ping.Chen@wsj.com

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