U.S. Hiring Slowed In January

GRAHAM DICKIE/THE NEW YORK TIMES

A sign soliciting job applications at an apparel store in Manhattan on Jan. 7. The pace of hiring slowed in January, with a total of 143,000 jobs added, as wildfires and snowstorms suppressed some industries and as the Federal Reserve signaled a pause in its course of interest rate cuts.

The pace of hiring slowed slightly in January, signaling more subdued employment growth even as joblessness remained low.

A total of 143,000 jobs were added, a showing that fell short of forecasts, the Labor Department reported today. The unemployment rate edged down to 4%.

In addition, annual revisions created a picture of a slower-moving labor market in 2024 than had previously been estimated.

The fresh numbers suggest that the labor market may be losing momentum heading into the second administration of President Donald Trump, whose policy agenda — including sharp cuts to federal payrolls and large-scale deportations of unauthorized migrants — could affect both employment and the availability of workers.

A slight deceleration: The revised monthly average for all of 2024 is 166,000 jobs, less than previously thought. With upward revisions to November and December, January looks like a step down.

Big wage gains: Average hourly earnings jumped 0.5% in January, and stand 4.1% higher than they were a year earlier. That was more than expected, and could reflect larger-than-usual end-of-year bonuses or cost-of-living adjustments going into effect.

Joblessness down: The unemployment rate had been bouncing between 4.1% and 4.2% for the previous seven months, so January was the lowest level since May 2024.

Usual suspects powering growth: As has been the case for the past year or so, health care, social assistance, retailing and government were the main sectors adding jobs in January. Mining and oil and gas extraction shed about 8,000 jobs, while other industries remained flat.

Little bearing on the Fed: The Federal Reserve’s rate-setting committee doesn’t meet until next month, when it will have more data — including another jobs report — to help shape its decision on whether to resume cutting interest rates.

This article originally appeared in The New York Times.

#U.S #hiring #slowed #January