Many investors were preparing for disappointing job numbers after recent comments from policymakers hinted at economic weakness. Instead, the latest employment data delivered a surprise on the upside.
The unemployment rate dropped to 4.3%, beating expectations of 4.4%. Job creation also remained solid, with the U.S. economy adding 130,000 new jobs in January, marking the strongest monthly gain since April 2025.
Even more impressive was the performance of the private sector, which added 172,000 jobs, its best result in over a year. This shows that hiring momentum is still alive despite higher interest rates and ongoing economic uncertainty.
Overall, the report points to a labor market that is holding up better than expected. Because of this strength, hopes for an interest rate cut in March are now fading, as policymakers are less likely to ease when employment remains resilient.