Jobs report today: America’s job market is showing signs of strain, and the latest numbers suggest the slowdown may have been deeper than first believed.
Jobs Report Today: America’s Job Market Shows Signs of Strain
The US added 130,000 jobs in January, according to the Bureau of Labor Statistics on February 11. At the same time, revisions to earlier reports indicate the labor market in 2024 and 2025 was weaker than previously estimated.
US Unemployment Rate Falls to 4.3%
The unemployment rate fell to 4.3%, continuing a gradual decline from 4.6% in November to 4.4% in December. Still, the broader picture has raised fresh concerns. The report, originally set for release on February 6 but delayed by a short government shutdown, arrives as the economy continues adjusting to tariffs, an immigration crackdown limiting the supply of workers, and employers’ growing adoption of artificial intelligence.
Kevin Hassett on Smaller Jobs Numbers and Productivity Boom
Before the data was released, National Economic Council Director Kevin Hassett cautioned that Americans should expect “slightly smaller jobs numbers.” In an interview on CNBC on, he said the figures could reflect a “productivity boom” alongside “a pretty big decline in the labor force.”
Hassett said at that time, “One shouldn’t panic if you see a sequence of numbers that are lower than you’re used to because, again, population growth is going down, and productivity growth is skyrocketing,” adding, “It’s an unusual set of circumstances,” as quoted by USA Today.
Signs of Stress: Unemployed Workers vs Job Openings
However, other indicators show stress beneath the surface. In December, there were 7.5 million unemployed workers and 6.5 million job openings, nearly one million more people looking for work than available positions, as per the USA Todau report.
January Layoffs Hit Highest Level Since 2009
Unemployment benefit claims have risen. A report from Challenger, Gray & Christmas found employers announced 108,435 job cuts in January, the highest total for the first month of a year since 2009.
“Low-Hire, Low-Fire” Labor Market Explained
Economists described 2025 as a “low-hire, low-fire” labor market. Many workers held tightly to their jobs, worried that finding a new one could be difficult.
The experience has varied by industry. Healthcare continued to generate steady job growth, offering opportunities for some job seekers, while other sectors saw more limited openings.
Jeff Bonci, President of Accounting & Finance Staffing at The Planet Group, described the hiring slowdown as a matter of timing and caution, as per the USA Today report.
He explained, “Many companies paused hiring decisions late in Q4 and carried that conservatism into January as they waited on finalized budgets, interest rate clarity, and economic signals,” adding, “Looking ahead, we expect hiring activity to pick up as budgets unlock and companies move forward with targeted, skills-based hiring rather than large headcount expansions,” as quoted by USA Today.
How the Jobs Report Impacts Federal Reserve Policy
The softer labor market has also influenced Federal Reserve policy. The Fed cut interest rates three times late last year but chose to hold rates steady at its January 28 meeting.
Chair Jerome Powell said that although job gains have remained low, the unemployment rate has shown “some signs of stabilization,” and the outlook for economic activity has improved. At the same time, he acknowledged that labor force participation and demand have softened, making it “a difficult time” to interpret the job market.
Two Fed policymakers, Stephen Miran and Christopher Waller, dissented from the January decision, favoring another quarter-point rate cut. Waller said he expected data revisions to show there was “virtually no growth” in payroll employment last year.
Market Reaction: Fed Rate Cut Bets Trimmed
On Wednesday, traders dealing in futures tied to short-term US borrowing costs scaled back their bets on Federal Reserve interest-rate cuts for this year, as per a Reuters report. Before the data was released, markets were pricing in about a two-in-five chance that the Fed would cut rates by April. After the report, that dropped to roughly a one-in-five chance, meaning most traders now expect rates to stay where they are, at least for now.
Investors are still leaning toward a possible rate cut in June. However, confidence there has also weakened. Traders now see nearly a 40% chance that the Fed will leave rates unchanged in June, compared with about a 25% chance before the jobs numbers came out.