The latest job report for December provides a comprehensive overview of the current state of employment in the United States. 

January's Key Findings

The U.S. Bureau of Labor Statistics reveals that total nonfarm payroll employment rose by 143,000 jobs in January 2025. The unemployment rate slightly decreased to 4.0 percent, reflecting positive trends in the labor market. 

Key sectors include:

• Healthcare
• Retail Trade
• Social Assistance
• Government

Sector-Specific Employment Trends

January's employment gains were concentrated in a few key sectors, showcasing the shifting demands across different industries. 

Healthcare

Health care led the way by adding 44,000 jobs, with hospitals, nursing and residential care facilities, and home health care services contributing significantly to this growth. 

Retail Trade

Retail trade also showed strength with a 34,000 job increase, predominantly in general merchandise and furniture retailers, although there was a noticeable decrease in electronics and appliance stores. 

Social Assistance

Social assistance saw an addition of 22,000 jobs, with individual and family services playing a crucial role. 

Government

Meanwhile, government employment continued its upward trend with an additional 32,000 jobs. 

Other Sectors

However, the mining, quarrying, and oil and gas extraction sector experienced a setback, losing 8,000 jobs, primarily in support activities for mining. Other major industries, including construction, manufacturing, and transportation, showed little change during the month.

Unemployment Rates

The unemployment rate edged down to 4.0 percent in January, reflecting a stable labor market. The overall number of unemployed individuals held steady at 6.8 million. Adult men and women both saw unemployment rates of 3.7 percent, while teenagers faced a significantly higher rate of 11.8 percent. Among racial demographics, White individuals experienced an unemployment rate of 3.5 percent, while the Black population experienced 6.2 percent, Asians 3.7 percent, and Hispanics 4.8 percent. The long-term unemployed, defined as those jobless for 27 weeks or more, made up 21.1 percent of the total unemployed, with their numbers remaining relatively unchanged.

In January, the labor force participation rate and the employment-population ratio were unchanged at 62.6 percent and 60.1 percent, respectively. The number of people employed part-time for economic reasons remained at 4.5 million. These individuals preferred full-time employment but worked part-time due to reduced hours or inability to find full-time positions. Additionally, 5.5 million people not in the labor force expressed a desire for a job but were not classified as unemployed since they were not actively seeking employment or were unavailable to start working.

Wage Growth & Average Workweek

In January, wages saw a boost as average hourly earnings for employees on private nonfarm payrolls increased by 17 cents, reaching $35.87. This reflects a positive 4.1 percent growth over the past year. Wages for private-sector production and nonsupervisory employees rose by 16 cents, bringing the average to $30.84. The average workweek for all employees on private nonfarm payrolls slightly decreased by 0.1 hours, settling at 34.1 hours. In the manufacturing sector, the average workweek remained stable at 40.0 hours, with overtime steady at 2.8 hours. However, production and nonsupervisory employees saw a reduction in their average workweek by 0.2 hours to 33.5 hours.

Updates To Prior Months' Employment Data

The employment data for November and December underwent significant revisions, enhancing the accuracy of the reported figures. November's total nonfarm payroll employment was revised upward by 49,000 jobs to 261,000 jobs, while December's employment figures increased by 51,000 jobs to 307,000 jobs. These revisions result from additional reports received from businesses and government agencies and the recalculation of seasonal factors.

In January 2025, the establishment survey data was revised due to the annual benchmarking process and the updating of seasonal adjustment factors. This annual benchmarking aligns the survey data with the more comprehensive data from the Quarterly Census of Employment and Wages, ensuring that employment estimates reflect the most recent and accurate information. These adjustments are essential for providing a more precise understanding of the employment landscape, accounting for factors like seasonal variations that affect job numbers.

Additionally, the household survey data for January 2025 was updated to reflect new population estimates. These adjustments are critical as they ensure that the survey samples accurately represent the current population, thus providing a reliable measure of labor force status, including employment and unemployment rates. The updated population controls typically involve recalibrating the demographic characteristics of the population, such as age, sex, and race, to align with the latest data from sources like the Census Bureau.

For further reading, check out our other blogs on topics related to the job market.

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