US Labor Market Adds 143,000 Jobs, Unemployment Rate Falls to 4%

In January, the U.S. labor market added 143,000 jobs, falling short of the 170,000 expected by economists, while the unemployment rate decreased to 4% from 4.1%. This report, released by the Bureau of Labor Statistics, also showed a revision of previous months' job gains, which were increased by 100,000, presenting a stronger end-of-year picture for 2024. Factors such as Los Angeles wildfires and severe cold weather were cited as potential contributors to the slower job growth, with estimates suggesting they may have reduced job additions by about 40,000 collectively. Wage growth rose to 4.1%, indicating persistent inflation pressures, and the labor force participation rate slightly increased to 62.6%. Despite the slower hiring pace, layoffs remained low, reflecting a stable job market amidst economic uncertainty related to trade policies. This report marks the first jobs count since the inauguration of President Trump, who has promised tax cuts and trade reforms.