Job Growth in the U.S. Slows Sharply in 2025

The United States experienced almost no job growth in 2025, according to revised data from the Bureau of Labour Statistics (BLS). The previous data showed they reported 584,000 jobs last year, but after updating the data, only 181,000 were added. This is far fewer than the 1.46 million jobs added in 2024.

However, there is some positive news: in January 2026, new jobs increased by 130,000, exceeding the 55,000 jobs economists had expected. Most jobs were in health care, social assistance, and construction, while employment in the federal government and the financial sector declined.

The unemployment rate fell slightly from 4.4% to 4.3% in January. Manufacturing, a key industry targeted by the Trump administration, showed little change overall, though factory jobs increased by 5,000 since 2024. Meanwhile, the leisure and hospitality industry added only 1,000 jobs, raising concerns given its heavy reliance on consumer spending.

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The BLS also removed 862,000 jobs from March 2024 to 2025 as part of an annual revision. Economists reported that these revisions have become more common since the pandemic, driven by changes in the job market that reduced the survey response rate. While the job market appears to be stabilising, investors remain concerned, as they believe the federal government may not consider any interest rate cuts until at least July.

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