The U.S. economy added 130,000 jobs in January, while the unemployment rate held steady at 4.3%, according to the latest report from the U.S. Bureau of Labor Statistics (BLS). Hiring was concentrated in construction, health care and social assistance, even as federal government and financial activities posted losses.
National coverage reflected a cautious but stabilizing tone. CNBC described the report as evidence of a labor market that remains steady but is cooling from prior highs, while Fox Business emphasized how benchmark revisions reshaped perceptions of 2025’s hiring strength.
CNN reported that January marked the strongest month of employment gains since December 2024 and suggested the improvement could signal the labor market is turning a corner after a year of weak job growth. ABC News similarly noted economists had expected continued softness heading into the report.
Still, the underlying data show payroll growth averaged just 15,000 jobs per month in 2025 after annual benchmark revisions significantly reduced prior estimates. Economists also cautioned that January’s hiring may have been influenced by seasonal and weather-related factors and warned that uneven job gains, soft demand and broader economic uncertainty continue to weigh on the labor market.
Construction Adds 33,000 Jobs
Construction employment rose by 33,000 jobs in January, driven primarily by gains in nonresidential specialty trade contractors (+25,000). The sector was essentially flat throughout 2025, making January’s increase a notable shift to start the year.
While one month does not establish a trend, the uptick in nonresidential specialty trades may reflect continued activity in infrastructure and complex commercial work, even as broader economic growth moderates. Live market reporting also highlighted construction as one of the clearer bright spots in the January data.
Unemployment Rate Steady at 4.3%
The unemployment rate remained at 4.3%, slightly above the 4.0% level recorded a year ago. The number of unemployed people stood at 7.4 million.
Long-term unemployment (27 weeks or more) held at 1.8 million but has increased by 386,000 over the past year. Long-term unemployed workers now account for 25% of all unemployed individuals.
Labor force participation (62.5%) and the employment-population ratio (59.8%) were little changed.
Wages Continue to Rise
Average hourly earnings increased by 0.4% in January to $37.17, marking a 3.7% increase over the past 12 months. The average workweek edged up slightly to 34.3 hours.
Steady wage growth combined with moderate job gains suggests a labor market that remains resilient but is no longer expanding at the pace seen in prior years.
Federal and Financial Sector Losses
Federal government employment declined by 34,000 in January and is down 327,000 since its October 2024 peak. Financial activities employment fell by 22,000 over the month.
The report’s annual benchmark revisions reduced total nonfarm employment levels for 2025, underscoring the slower pace of job growth last year and reinforcing the broader narrative of a cooling — though not contracting — labor market.
What It Means for the Construction Industry
For the construction sector, January’s gains are a positive signal after a largely stagnant 2025. Growth in nonresidential specialty trades suggests continued demand for technical and complex projects.
At the same time, elevated long-term unemployment and slower overall payroll growth point to a labor market that is stabilizing at a more measured pace.
For Owners and industry leaders, the current environment reflects a steady but cautious labor landscape: wage pressures remain, workforce availability is uneven and productivity will matter more than pure hiring volume. In this climate, collaborative delivery approaches that align design and construction teams early can help mitigate labor constraints, reduce rework and keep complex projects on schedule even when workforce growth is incremental rather than expansive.
The Employment Situation for February will be released March 6, 2026.
