Job Report January 2025:

Job creation was lower than expected in January, although unemployment angled down and workers’ wages increased sharply, the Bureau of Labor Statistics reported Friday.

Nonfarm wages Climbed by a seasonally adjusted 143,000 for the month, down from an upward revised 307,000 in December and under the 169,000 forecast from Dow Jones. Unemployment pushed down to 4%.

The report also contained significant benchmark revisions of the total overalls in 2024, which saw significant downward changes to the previous salary level, even though they are upward revisions to those who reported to keep jobs.

The audits that BLS perform each year reduced the jobs that count by 589,000 in the 12 months through March 2024. A preliminary adjustment back in August 2024 had indicated 818,000 fewer jobs.

The level of those reporting at work, as calculated in the household survey, increased by 2.23 million, the product of annual adjustments for population and immigration in the country. The household survey is done separately from the establishment survey, which is used to vote everywhere in the entire jobs.

Job growth for January was concentrated in health care (44,000), retail (34,000) and the government (32,000). The total win for the month was a little away from the average 166,000 by 2024, BLS said. Social assistance added 22,000, while mining of industries lost 8,000.

Along with the upward revision for the December count, BLS took a total of November to 261,000, a change of 49,000. The two months together saw upward revisions of 100,000.

Unemployment moved lower as the workforce’s participation increased, rose to 62.6%, an increase of 0.1 percentage points from December. A wider measure that includes discouraged workers as well as those who have part -time jobs for financial reasons kept stable at 7.5%.

While job gains were muted, wages rose more than expected: Average hourly earnings increased 0.5% for the month and 4.1% a year ago compared to respective estimates of 0.3% and 3.7%.

Markets showed little reaction to the report, where futures in the stock market around flat and the treasury provides higher.

“A lower than expected salary number with January was more than offset by upward revisions for November and December’s totals and a unemployment pack,” said Ellen Zentner, Chief Economic strategist in Morgan Stanley Wealth Management. “Those who had hoped for a soft report that would push bold back into speed cutting mode did not get it.”

The report is the first job counting since President Donald Trump took up on January 20 with plans to reduce taxes, increase growth and smooth the global gaming field by trade by beating heavy tariffs on the biggest US trading partners.

Federal Reserve -Officers see the numbers closely when considering their next monetary policy features. Fed reduced its benchmark rate by a full percentage point in the latter part of 2024, but the late ones that are too late have advocates for a more cautious pace ahead when assessing political consequences.

The markets expect Fed to remain waiting until at least June, with another cut to approx. 50-50 chance, according to Futures pricing measured by the CME group.

While some economists had expected California -Silde fires to reduce the job count, the agency said they “had no noticeable effect” on the total.

Correction: Unemployment dropped to 4% in January. The heading of an earlier version mistakenly moved the move.