January US Nonfarm Payrolls Rise More Than Expected, Unemployment Rate Declines

08:41 AM EST, 02/11/2026 (MT Newswires) -- The January employment report showed nonfarm payrolls rose by 130,000, double the 65,000 jobs increase expected in a survey compiled by Bloomberg, but December payrolls were revised down to a 48,000 increase and November payrolls were revised down to a 41,000 increase, for a net downward revision of 17,000 jobs over the two months.

Annual benchmark revisions to the establishment survey are included with the data, with total net downward revision of 898,000 jobs. The 2025 total change in employment was revised down to 181,000 from 584,000, BLS said.

Private payrolls rose by 172,000 in January after a 64,000 increase in December, well above the increase of 68,000 private jobs expected. There was a notable job gain for health care and social assistance, which accounted for 123,500 of the job gains.

The unemployment rate fell to 4.3% in January from 4.4% in December, compared with a 4.4% rate expected, while the labor force participation rate rose to 62.5% from 62.4% in December and the size of the labor force expanded.

Hourly earnings rose by 0.4%, higher than the 0.3% gain expected, and following a 0.1% increase in December. Hourly earnings were up 3.7% year-over-year, the same as in the previous month.

The average workweek rose to 34.3 hours from 34.2 hours in December, ahead of the 34.2 hours expected.

The monthly employment report released by the Bureau of Labor Statistics consists of two separate surveys and is considered the most important data release for the month. The survey of businesses measures the levels of employment and wages and the length of the average workweek, broken down by industry.

The survey of households measures the number of people working or looking for work, the unemployment rate, those that have left the workforce and reasons for part-time work.

Market reaction can be mixed, particularly when the two surveys disagree. A strong increase in employment or a decline in the unemployment rate is generally a positive for stocks as sign of a strong US economy, but bonds would react negatively to the same news, particularly if wages rise sharply at the same time.

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