Good news is federal government jobs declined
Total nonfarm payroll employment rose by 130,000 in January. Job gains occurred in health
care, social assistance, and construction, while federal government and financial activities
lost jobs. Payroll employment changed little in 2025 (+15,000 per month on average). (See
table B-1. See the note at the end of this news release and table A for more information about
the annual benchmark process.)
Health care added 82,000 jobs in January, with gains in ambulatory health care services
(+50,000), hospitals (+18,000), and nursing and residential care facilities (+13,000). Job
growth in health care averaged 33,000 per month in 2025.
Employment in social assistance increased by 42,000 in January, primarily in individual and
family services (+38,000).
Construction added 33,000 jobs in January, reflecting an employment gain in nonresidential
specialty trade contractors (+25,000). Employment in construction was essentially flat in 2025.
In January, federal government employment continued to decline (-34,000) as some federal
employees who accepted a deferred resignation offer in 2025 came off federal payrolls. Since
reaching a peak in October 2024, federal government employment is down by 327,000, or 10.9
percent.
Financial activities employment declined by 22,000 in January and is down by 49,000 since
reaching a recent peak in May 2025. Within the industry, insurance carriers and related
activities lost 11,000 jobs over the month.
Employment showed little change over the month in other major industries, including mining,
quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade;
transportation and warehousing; information; professional and business services; leisure and
hospitality; and other services.
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. (See tables B-3 and B-8.)
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 workweek for production and
nonsupervisory employees on private nonfarm payrolls increased by 0.1 hour to 33.8 hours. (See
tables B-2 and B-7.)
