WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that 130,000 jobs were added in January, far beating industry expectations of just 55,000 jobs. The overall unemployment rate fell to 4.3% in January from 4.4% in December.
The unemployment rate for women rose slightly from 3.9% to 4.0%, likely partially due to more women feeling confident to leave the sidelines and enter the workforce. Overall labor force participation rose slightly to 62.5% in January from 62.4% in December.
The overall increase in labor force participation is in line with women’s labor force participation, which rose to 57.5% in January from 57.3% in December. Meanwhile, men’s labor force participation rose to 67.8% from 67.7% in December. Both rates for men and women are still below pre-pandemic levels.
January saw strong growth in healthcare jobs, construction, and private services provision. This was partially offset by employment losses in the federal government, transportation and warehousing, and financial services. Federal employment lost 34,000 jobs in January (following a decline of 13,000 in December), totaling 324,000 jobs lost since January 2025.
The University of Michigan’s gauge of consumer sentiment rose to 56 in January, up from 52.9 in the prior month. January’s sentiment marked the third straight gain and the highest level of sentiment since August.
Carrie Sheffield, senior policy analyst at Independent Women’s Center for Economic Opportunity, issued the following statement:
“America’s accelerating labor market is a positive sign for our economy, providing the foundations to rebuild U.S. households’ financial strength amid affordability concerns. Exceptional job growth in January and rising consumer sentiment bode well for future job creation and economic growth, which we witnessed in the last two quarters of 2025.
“While there was some softening in the labor market in 2025 due in part to federal government reforms from the Trump administration resulting in significant layoffs and buyouts, we are starting to see those former government workers shift into private-sector, value creating roles. We saw more workers feeling confident to enter the job market, as evidenced by rising January labor force participation.
“The Trump administration continues to liberate the labor market through smart deregulation—especially President Trump’s powerful requirement that for every one regulation promulgated, 10 are removed. This frees up revenue for businesses to reinvest in their workforces by hiring or raising wages.
“We look forward to the continued progress toward tax and regulatory reforms that will enable job and wage growth, thanks to the Working Families Tax Cut in the One Big, Beautiful Bill Act.
“As January’s employment report shows, these efforts are bearing fruit and will continue to bolster job creation for American families in the months ahead.”
###
Independent Women’s unique, persuasive methods and trusted brand shape public preferences, policies, and movements to create a better future for everyone.
Independent Women’s Center for Economic Opportunity aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.
