If 2025 was the year of the labor market’s long winter, January provided the first thaw—along with a bit of a victory lap for outgoing Federal Reserve Chair Jerome Powell.
U.S. employers added 130,000 jobs in January, roughly double economists’ expectations and the strongest headline print in months, offering an unexpectedly upbeat start to a year that made Maria Bartiromo exclaim “Wow,” on Fox Business.
Health care alone added 82,000 jobs in January, while social assistance contributed another 42,000. Construction chipped in 33,000. At the same time, federal government employment fell by 34,000 and financial activities shed 22,000 jobs. And for the first time in months, there were signs of life beyond the usual defensive sectors. Manufacturing posted an upside surprise, hinting that hiring may be stabilizing in parts of the economy that had struggled through much of 2025.
The report provides vindication for economists like Torsten Slok, who have stayed bullish despite widespread pessimism. He predicted earlier this month that the U.S. economy is “about to take off,” thanks to reindustrialization and a floor set by AI capital expenditure, while arguing that tremors such as the selloff in tech stocks are not a macro problem in terms of economic growth.
