BLS January Jobs Report: Necessity Sectors Drive Growth Amid Sectoral Weakness

The Bureau of Labor Statistics reported January U.S. employment gains stronger than expected, but gains were concentrated in necessity sectors. Health care added 82,000 jobs; social assistance added 42,000. Nonresidential construction posted gains, supporting broader construction activity, while financial services (-22,000) and federal government employment (-34,000) declined. The unemployment rate remained at 4.3% (unchanged from December), with the number of unemployed rising to 7.4 million, both higher than a year earlier (4.0% and 6.9 million, respectively). Scheduled revisions to 2024-2025 estimates show 2025 labor market growth likely weaker than initially reported, the slowest in two decades excluding recessions. White-collar sectors, including government and professional services, accounted for the steepest job losses last year, according to ManpowerGroup analysis.