#USNFPBlowout
US labor market in January: a great start for 2026 after a weaker 2025
At the beginning of this year, labor markets surprised us significantly. The January report shows a spectacular increase of 130,000 jobs. Once again, the healthcare sector led hiring, with 82,000 new jobs.
The categories potentially affected by AI had mixed results: information (-12,000) and financial services (-22,000) recorded declines, while business services saw a solid increase of 34,000.
Construction also showed strength, with an increase of 33,000 jobs, and the manufacturing industry met what the data on orders and confidence suggested: a modest increase of 5,000 after months of losses. Strong hiring was also reflected in the unemployment rate, which fell from 4.4% to 4.3%.
Combined with a rebound in the participation rate from 62.4% to 62.5%, the report sends a very clear signal. The solid headline figure comes alongside the final revisions for 2025, indicating that only 181,000 jobs were created last year, instead of the previously reported 584,000.
