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The Bureau of Labor Statistics (BLS) reports that U.S. employers expanded payrolls by 130,000 jobs last month. January’s job gains exceeded many economists’ projections of between 50,000 – 69,000 jobs. The January jobs report, released later than expected this month due to a recent partial government shutdown, also notes that employers added 17,000 fewer jobs than previously reported in November and December combined. Other revisions the BLS made to its jobs report data show that the U.S. economy added just 181,000 jobs in 2025. The previous estimate was 584,000 jobs. 

Private education and health services a top driver of January’s job growth

The private education and health services industry led the way in job gains last month, with employers increasing payrolls by 137,000 jobs. These industries also saw significant job gains, according to the BLS: Professional and business services: 34,000 jobs added, including 9,100 jobs in temporary help services Construction: 33,000 jobs added These industries saw job growth last month as well: Manufacturing: 5,000 jobs added Retail trade: 1,200 jobs added Leisure and hospitality: 1,000 jobs added Industries that experienced payroll contraction in January include financial activities (-22,000 jobs), information (-12,000 jobs), and transportation and warehousing (-11,200 jobs). Find out more about industries hiring right now.

National unemployment drops slightly to 4.3%

The BLS reports the U.S. unemployment rate in January was 4.3%., down from 4.4% in December. Meanwhile, the rate for college-degreed professionals who are 25 or older increased—rising from 2.8% in December to 2.9% in January. These professionals are in the highest demand by employers. Other recent data from the BLS shows many highly skilled jobs in these fields have even lower unemployment rates: Administrative and customer support Finance and accounting Human resources (HR) Legal Marketing and creative Non-clinical healthcare Technology

On the rise: Business confidence and hiring activity

While January’s job gains were well above economists’ projections, separate data from the BLS suggests many employers entered 2026 with a cautious outlook toward workforce expansion. In its latest Job Openings and Labor Turnover Summary (JOLTS), the agency noted that job openings fell to 6.5 million in December, down from 7.1 million at the end of November. The quits rate held steady at 2.0%. Business confidence has been improving, though. For example, small business sentiment is trending up, with the NFIB Small Business Optimism Index rising and the Uncertainty Index at its lowest level since mid-2024. As inflation cools and uncertainty eases, many employers are revisiting initiatives they had previously put on hold. According to research from Robert Half, 60% of hiring managers are planning to add permanent staff in the first half of 2026, and 55% expect to bring on more contract talent. The need to address glaring skills gaps is motivating many organizations to step up hiring. Robert Half’s research shows only 6% of employers have the talent needed to complete high-priority projects this year. Many leaders say the skills gap is more noticeable than last year (62%), and 58% say finding skilled talent is harder than it was a year ago. Go deeper on emerging trends in the labor market in early 2026.

Check out Robert Half’s newly updated Demand for Skilled Talent report

Read the 2026 report Robert Half’s 2026 Demand for Skilled Talent report is available now, providing fresh data and analysis on trends in the U.S. hiring market. Get insight into employers’ priorities, hiring plans and challenges for 2026, hiring trends across professions, insight into organizations’ succession strategies, and the impact of AI on career paths and skills needs.

Understand 2026 compensation trends with Robert Half’s Salary Guide

View the 2026 Salary Guide The 2026 Salary Guide From Robert Half covers compensation trends across 7 professional fields: finance and accounting, technology, marketing and creative, legal, administrative and customer support, non-clinical healthcare, and human resources (HR). Our annual guide features exclusive data and input from employers and workers, and from our recruiters who staff tens of thousands of jobs each year. The Salary Guide can be a valuable resource, whether you’re launching a job search, actively hiring talent or developing a staffing strategy for your business.

Stay in the know about the latest labor market trends—with Robert Half

Go to Labor Market Overview Get research-based insights into how the U.S. hiring market is trending on Robert Half’s Labor Market Overview page. Find out which industries are hiring most, what’s happening with hybrid and remote work options, what recruitment challenges employers are facing, and more.