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US payrolls rose in January by the most in more than a year and the unemployment rate unexpectedly fell, suggesting the labor market continued to stabilize at the start of 2026.
Employers added 130,000 jobs last month and the unemployment rate declined to 4.3%, according to Bureau of Labor Statistics data out Wednesday. That followed revisions to the prior year, which showed a marked slowdown in hiring. Job gains averaged just 15,000 a month last year, down from the initially reported 49,000 pace.

The report suggests the labor market is finding its footing after a year marked by rising unemployment and minimal hiring. While economists expect hiring to remain generally sluggish in 2026, more clarity around the impact of President Donald Trump’s economic policies and lower borrowing costs could encourage some employers to boost headcount.

The January data reinforces Federal Reserve officials’ inclination to keep interest rates on hold for now. Many traders appeared to push out their timeline for the next rate cut to July from June.
In leaving rates unchanged last month, Chair Jerome Powell cited signs of steadying in the job market.

“Coming off of a hiring recession in 2025, this is welcome news,” said Heather Long, chief economist at Navy Federal Credit Union. “I think Fed Chair Powell was right — the labor market appears to be stabilizing.”

Today's show features:

• Constance Hunter, Chief Economist at the EIU (Economist Intelligence Unit), on the late-arriving January nonfarm payrolls report
• Aaron Jagdfeld, Chairman, President and CEO of Generac, on earnings, the state of manufacturing in America, and US trade policy impact
• Bloomberg News White House Editor Jordan Fabian on President Donald Trump reportedly mulling an exit from the North American trade pact that he helped negotiate, the USMCA
• Lauren Sanfilippo, Senior Investment Strategist, for Merrill and Bank of America Private Bank, on US consumer resilience and private sector growth