The U.S. labor market started 2025 — and President Trump's term — in a state of uncanny balance. Why it matters: Unemployment is low and steady, and job growth is chugging consistently forward. It's an environment that allows policymakers at the Federal Reserve and beyond to be patient in deciding what to do next.

The Labor Department has released its first jobs report of the year, covering January 2025. It shows that payrolls grew by 143,000 — somewhat lower than economists’ expectations of 175,000. On the other hand, payroll growth for the end of 2024 was revised up quite a bit. Over the past 3 months, payroll growth has averaged a very strong 234,000.

The January jobs report revealed fewer new jobs than expected but the unemployment ticked down slightly.

U.S. employers added 143,000 jobs last month, somewhat fewer than forecast, while unemployment fell to 4 percent and hourly earnings rose.

Analysis of the impact of Biden and Trump's economic policies on the labor market, inflation, interest rates, housing market, and the S&P 500. Click for more.

Employers added 143,000 jobs in January amid LA wildfires, cold weather, uncertainty over President Donald Trump's trade, immigration policies

The economy added a mild 143,000 new jobs in January as massive California wildfires and a cold snap in much of the country acted as a drag on hiring. But the details of the employment report point to a robust labor market that gained strength at the end of 2024.