U.S. employers added 143,000 new jobs in January, a little less than economists had expected, according to the latest employment report from the U.S. Bureau of Labor Statistics (BLS), released Feb. 7.

The job counts for November and December were revised upward by a combined 100,000 and the unemployment rate for January dipped down to 4.0%, near historic lows.

The job market is moderating but remains strong. Recent indicators show that while hiring has leveled off, layoffs aren’t appreciably increasing, and workers aren’t quitting. Job openings, however, are on the decline.

The latest jobs report also featured significant benchmark revisions to recent employment totals. There were 589,000 fewer jobs added to payrolls in the 12 months through March 2024 than previously reported. In addition, a final count of reported numbers for 2024 shows the year’s employment total was revised down by 236,000 jobs.

“The foundation of the labor market remains incredibly sturdy,” said Cory Stahle, an economist at the Indeed Hiring Lab. “Revisions to the past year’s data may have rearranged a few rooms in the house, but they did not fundamentally change the structure. Despite somewhat smaller-than-expected job gains in January, the job market is kicking off 2025 with considerable momentum, with unemployment unexpectedly ticking down and wage growth picking up.”

Still, there are a few cracks worth monitoring, Stahle said: “Hiring and quitting activity remain near decade lows, and growth in prime-age labor force participation is showing signs of slowing.”

Geno Cutolo, president of Adecco North America, said that while economists were expecting job gains closer to 170,000, there “were some bright spots. But January won’t necessarily be a barometer for what the remainder of the year is going to look like,” he added, pointing to seasonal trends and anomalies such as the cold snap on the East Coast and the wildfires that devastated Los Angeles. “As we look ahead, we expect to see a strong sense of resiliency and durability in the market.”

Julia Pollak, chief economist at ZipRecruiter, said that “the combination of stronger-than-expected wage growth, a lower unemployment rate, and a stabilizing labor force suggests the labor market is still running hotter than many anticipated. Employers have not found relief on pay pressures, and as long as joblessness remains low, wages are unlikely to ease significantly.”

The January jobs report reflects a market that remains challenging for those looking for jobs, said Ger Doyle, U.S. country manager at ManpowerGroup. “2025 is shaping up to be another year of significant changes,” he said. “Our real-time data show total open job postings declined 3%, indicating a slight contraction in overall job demand. Despite the overall decline, there are signs of increased hiring activity.”

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