U.S. employers added 143,000 jobs in January and the unemployment rate decreased slightly to 4.0%, according to preliminary data released Friday by the Bureau of Labor Statistics.
The number of jobs created last month was slightly less than the average monthly gain of 166,000 jobs throughout 2024. The largest gains occurred in healthcare (+44,000), retail trade (+34,000), and social assistance (+22,000). Government jobs also increased (+32,000).
Employment declined in the mining, quarrying, and oil and gas extraction industry (-8,000). There was little significant change in other major industries including construction, manufacturing, wholesale trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services.
On Friday, BLS also upwardly adjusted its previously released preliminary data for November and December by a combined 100,00 jobs. The November jobs number was revised upward by 49,000 to 261,000 and December was revised upward by 51,000 to 307,000.
In January, average hourly earnings for all employees on private nonfarm payrolls rose 17 cents, or 0.5%, to $35.87. Over the past 12 months, average hourly earnings have increased 4.1 %.
In January, both the labor force participation rate (62.6%) and the employment to population ratio (60.1%) remained unchanged, after accounting for the annual adjustments to the population controls. Both measures have remained relatively flat in recent months.
The labor force participation rate captures the percentage of working-age people who are employed or actively seeking work. The employment to population ratio measures how people are employed against the total working-age population of a region.
