U.S. job growth beats January forecasts

WASHINGTON, Feb. 11 – U.S. job growth unexpectedly accelerated in January and the unemployment rate edged down to 4.3%, a stronger start to 2026 that may give the Federal Reserve room to keep rates unchanged while it watches inflation, Reuters reported.

The Labor Department’s Bureau of Labor Statistics said nonfarm payrolls rose by 130,000 in January, while job gains were concentrated in health care, social assistance and construction.

Pay gains and participation

Average hourly earnings increased 0.4% in January and were up 3.7% from a year earlier, while a broader underemployment rate slipped to 8%, according to CNBC’s report on the data.

Markets initially took the report as a relief sign after forecasts clustered near 70,000 new jobs and a steady 4.4% unemployment rate, the Guardian wrote.

Revisions and sector mix

Benchmark revisions cut 2025 payroll gains sharply – to 181,000 from prior estimates – underscoring how soft last year’s labor market was despite January’s bounce, Reuters noted.

The BLS said health care added 82,000 jobs, social assistance rose 42,000 and construction gained 33,000, while federal government and financial activities posted declines, the agency’s release shows.

Fed outlook

Economists said the mix of headline strength and weak revisions leaves policymakers cautious, with the Fed likely to stay on hold until inflation progress is clearer, according to Reuters’ analysis.

Analysts at Indeed’s Hiring Lab said revisions to 2025 data overshadowed the January gain and that health care and social assistance continue to dominate job creation, the Hiring Lab report said.

Still, the stronger-than-expected print lifted stock futures and Treasury yields, a sign investors see less urgency for near-term rate cuts, CNBC reported.

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