Job Market BLOG

SUMMARY: The U.S. labor market continues to slog along, with U.S. government data and private data showing different trends.

DETAILS: U.S. Bureau of Labor Statistics (BLS) reports a net growth of 130,000 (nonfarm) jobs in January 2026. Growth was driven largely by health care, social assistance, and construction, while financial activities and federal government employment declined.

Private‑sector data from ADP paints a more subdued picture, showing only 22,000 private‑sector jobs added in January, a much smaller gain than the official federal figure. ADP reported strong hiring in education and health services (+74,000) and notable losses in professional and business services (–57,000) and manufacturing (–8,000), suggesting pockets of weakness that differ from the broader BLS totals. This contrast highlights ongoing divergence between survey‑based government data and payroll‑based private reporting.

The unemployment rate is holding steady at 4.3% (similar to rates last experienced in late 2021). So the job market is sluggish, with considerable variation across sectors.