U.S. employers added 130,000 jobs in January, significantly more than the 75,000 jobs economists anticipated. The data suggests January marked the "strongest month of employment gains since December 2024."
Health care dominated January's job gains:
Sectors gaining jobs: Health care (+82,000), construction (+33,000)
Losing sectors: Federal government (-35,000), financial services (22,000).
January's unemployment rate fell slightly to 4.3%:
The unemployment rate declined to 4.3% in January, from 4.4% in December.
While the "number of long-term unemployed … changed little in January," the number of long-term unemployed Americans is "up by 386,000 from a year earlier."
Labor force participation jumped:
For "people in their prime working years" (25 to 54), the labor force participation rate "jumped to 84.1 percent," reaching the highest level it has been at since 2001.
The overall labor force participation rate came in at 62.5% in January, little changed.
Average workweek "edged up":
The average workweek "edged up by 0.1 hours" -- a "sign of strong labor demand."
Average hourly earnings "rose by 15 cents, or 0.4 percent, to $37.17."
Over the past year, average hourly earnings were up 3.7%.
Revisions to prior months:
November's jobs total was revised down by 15,000, from +56,000 to +41,000, while December's total was revised down by 2,000, from +50,000 to +48,000.
The U.S. economy put in a strong showing at the start of 2026, following a year of disruptions that depressed both the demand for labor and its supply."
Read more via Bureau of Labor Statistics, The New York Times, CNN
U.S. employers "added far fewer jobs in 2024 and 2025 than previously estimated," according to newly released Bureau of Labor Statistics data.
Once a year, the Bureau of Labor Statistics issues its "annual benchmark revision," where the agency "squares the monthly payroll estimates from employer surveys" with “less timely but more reliable data from state governments.”
2024-2025 job growth was weaker than previously estimated:
According to the latest annual benchmark revision, "there were 898,000 fewer jobs added between April 2024 and March 2025."
A previous estimate suggested the U.S. economy added 584,000 jobs in 2025. That has been revised to just 181,000 jobs, or an estimated 15,000 jobs per month.
2024 job growth estimates were lowered by “nearly 28 percent.”
What is this annual benchmark revision and why haven't I heard of it before now?
The benchmark revisions are, in fact, a "longstanding annual process."
Generally, the revisions “have typically been small and attracted relatively little attention.”
Read more via Bureau of Labor Statistics (benchmark), The New York Times
The healthcare sector continues to boost the U.S. labor market overall.
In January, "nearly all of the 130,000 new jobs added" were in the healthcare sector.
The healthcare sector has been adding jobs over the past year, just as other sectors have "reined in hiring or even shed jobs."
Demand for some healthcare roles (including nurses) is "so strong that healthcare providers have to outbid each other, offering five-figure signing bonuses and generous paid time off."
Experts confirmed to The Wall Street Journal that the sector is "way outperforming most of the rest of the economy."
The economy's dependence on the sector could mean trouble if and when growth in healthcare slows.
Read more via The Wall Street Journal
U.S. employers should "prepare for “aggressive and assertive” activity" related to reverse discrimination by the Equal Employment Opportunity Commission (EEOC), according to legal experts.
Last year, a number of lawsuits were filed against employers on behalf of White employees "challenging employers’ hiring practices, training and other internal DEI policies."
Legal experts consulted by HR Dive said they "have not seen much of an increase in reverse discrimination litigation, if at all."
But experts say the "more significant change is the emphasis that regulators, namely the U.S. Equal Employment Opportunity Commission, have placed on bringing reverse discrimination claims."
In June 2025, a Supreme Court ruling cleared the way for the removal of "court-imposed barriers on majority-group plaintiffs alleging job discrimination."
In December 2025, EEOC Chair Andrea Lucas posted on X, writing: "Are you a white male who has experienced discrimination at work based on your race or sex? You may have a claim to recover money under federal civil rights laws."
Last month, President Donald Trump said during an interview with The New York Times that the "concept of “reverse discrimination” is driving his aggressive crusade against diversity policies."
Legal experts say employers should review technical assistance documents issued last year by the EEOC and Department of Justice:
What to Do If You Experience Discrimination Related to DEI at Work
What You Should Know About DEI-Related Discrimination at Work
Read more via HR Dive, The New York Times, Vorys
The Equal Employment Opportunity Commission (EEOC) is investigating Nike for DEI policies the agency says “amounted to discrimination against white workers.”
Experts say the investigation appears to mark the "first time the Equal Employment Opportunity Commission has targeted diversity policies at a large company."
The EEOC alleges that “Nike may have engaged in a pattern or practice of disparate treatment against White employees, job applicants and training program participants in hiring, promotion, demotion and separation decisions.”
Nike called the filing a “surprising and unusual escalation.”
Read more via HR Dive, The New York Times
Australia: 93% of Australian employers say they are facing "challenges in identifying suitable candidates amid a surge of overqualified applicants," according to a new Robert Half survey. 82% of employers say they "have seen an increase in the number of overqualified candidates applying for roles." (SIA)
France: France's GDP increased by 0.9% in 2025, according to the National Institute of Statistics and Economic Studies (INSEE). 2025 growth came in above initial forecasts, which anticipated growth of just 0.7%. Still, 2025 GDP growth came in under the "1.1% and 1.6% growth rates achieved in 2024 and 2023." Fourth quarter GDP growth came in at +0.2%, compared to +0.5% in the fourth quarter of 2024. (Lemonde)
Greece: Greek farmers drove approximately 70 tractors into Athens for an overnight protest last week at the country's Parliament, where they are demanding tax relief and state support after a 55-day nationwide demonstration that blocked highways and border crossings. (Barron's)
Ireland: December had the “lowest level of hiring activity in 2025 for permanent, contract and temporary roles,” according to the most recent Irish Labour Monthly Monitor. The only months in 2025 where "no participating recruiters registered 50-plus permanent placements" were November and December. Only one in eight recruiters reported an increase in contract hiring activity in December, the "lowest level recorded in 2025." (SIA)
Switzerland: Unemployment increased to 2.9% in January on a seasonally adjusted basis, up 0.3% year-over-year, according to the country's State Secretariat for Economic Affairs (SECO). The number of unemployed people was more than 120,000 up from the January 2025 total. (SIA)
NOTE: There will be no Need to Know Briefing published Monday, February 23. The next issue will be published Monday, March 2.
