The January figures of 2025 presented a notable labor market performance in the USA, with total nonfarm payroll employment increasing by 143,000 and a slight decrease in the unemployment rate at 4.0%.
Key Sectors Driving Employment Growth
- Health Care: Added 44,000 jobs, with substantial gains made in hospitals (+14,000) and nursing and residential care facilities (+13,000) and home health care services (+11,000).
- Retail Trade: Gained 34,000 jobs, especially in general merchandise retailers (+31,000) as well as furniture and home-furnishing stores (+5,000).
- Social Assistance: 22,000 jobs were added in this industry, mainly ramped up by individual and family services (+20,000).
Wage Growth and Economic Indicators
Average hourly earnings for all private nonfarm payrolls rose 0.5 percent in January, to $35.87. In the past twelve months, wages have increased 4.1 percent.
The strong job market is a reflection of the economy’s ability to withstand the challenges posed by changes in policy and uncertainties around the globe. Immigration policies becoming stricter and trade tariffs might affect future employment trends.
The January employment report sends out a strong signal that things are looking good for the U.S. economy, and job growth in tandem with increasing wages provide a sound basis for this growing stability.
