January Jobs Rebound

You look at the latest January 2026 jobs report, and this is a labor market that is growing, albeit in little slower than we would like. The U.S. added roughly 130,000 jobs, beating expectations, and the unemployment rate edged down to around 4.3%.  At a time when everyone’s been bracing for slowdown headlines, the economy is still generating jobs. This is the kind of backdrop policymakers want.

And here’s what stands out: the gains weren’t narrow. Health care, social assistance, construction and key service sectors continued to hire, showing that underlying demand in the economy is still intact. For those of us tied to the staffing industry, December’s number was revised up and January was positive.  Government continued to shed jobs. 

The JOLTS report showed a decline in jobs openings (6.5mm open jobs in December). Keep in mind that this number has been elevated since COVID and the current number is historically a more normal number. Just for reference, there were only 2.2mm open jobs during the height of the great recession (July 2009).

Wage growth held firm as well, which indicates employers are still competing for talent. Businesses aren’t slamming the brakes; they’re hiring carefully and deliberately. Unemployment remains low by historical standards, job creation is positive, and wage pressures aren’t spiraling.

It’s the definition of a soft landing.

For a deeper dive….

• A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons fell to 8.0%.

• Prime age labor force participation rate (ages 25-54) is 84.1%.

• The overall labor force participation is 62.5%. This is still .7% below the level of February 2020.

• In January, average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents, or 0.4 percent, to $37.17. Over the past 12 months, average hourly earnings have increased by 3.7 percent. In January, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $31.95.

• The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.3 hours in January. In manufacturing, the average workweek edged up by 0.1 hour to 40.1 hours, and overtime was unchanged at 2.9 hours. The average work week for production and nonsupervisory employees on private nonfarm payrolls increased by 0.1 hour to 33.8 hours.

• APD reported that 22,000 jobs were added in January.

The number of job openings continued to trend down to 6.5 million in December, the U.S. Bureau of Labor Statistics reported today. Over the month, both hires and total separations were little changed at 5.3 million each. Within separations, quits (3.2 million) were unchanged while layoffs and discharges (1.8 million) were little changed.

This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class. Job openings include all positions that are open on the last business day of the month. Hires and separations include all changes to the payroll during the entire month.

Job Openings

The number of job openings trended down to 6.5 million (-386,000) in December and was down by 966,000 over the year. The job openings rate, at 3.9 percent, changed little over the month. The number of job openings decreased in professional and business services (-257,000), retail trade (-195,000), and finance and insurance (-120,000).

Hires

In December, the number and rate of hires were little changed at 5.3 million and 3.3 percent, respectively. The number of hires increased in real estate and rental and leasing (+38,000) and in state and local government, excluding education (+36,000). Hires decreased in federal government (-11,000).

Separations

Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.

In December, the number and rate of total separations were little changed at 5.3 million and 3.3 percent, respectively. The number of total separations decreased in professional and business services (-212,000) and in private educational services (-20,000). Total separations increased in transportation, warehousing, and utilities (+110,000) and in federal government (+10,000).

In December, the number and rate of quits were unchanged at 3.2 million and 2.0 percent, respectively.

The number of quits decreased in professional and business services (-151,000) and in private educational services (-19,000). Quits increased in retail trade (+87,000) and in information (+28,000).

The number of layoffs and discharges in December was little changed at 1.8 million. The layoffs and discharges rate was unchanged at 1.1 percent. Layoffs and discharges increased in transportation, warehousing, and utilities (+103,000) but decreased in finance and insurance (-20,000).

The number of other separations was little changed at 285,000 in December.

Establishment Size Class

In December, establishments with 1 to 9 employees and establishments with 5,000 or more employees showed little or no change in job openings, hires, and separations rates.

November 2025 Revisions

The number of job openings for November was revised down by 218,000 to 6.9 million, the number of hires was revised up by 6,000 to 5.1 million, and the number of total separations was revised up by 64,000 to 5.1 million. Within separations, the number of quits was revised up by 32,000 to 3.2 million, the number of layoffs and discharges was revised up by 14,000 to 1.7 million, and the number of other separations was revised up by 17,000 to 249,000.

(Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)