U.S. employment in January 2025 increased by 143,000 jobs, with the unemployment rate dropping to 4%, potentially impacting consumer spending and future inflation.

On February 7, 2025, the United States released its employment report for January, with the following key details:

- Non-Farm Employment Change:
The U.S. economy added 143,000 new jobs in January, falling short of economists’ expectations of 170,000 jobs.

- Unemployment Rate:
The unemployment rate slightly declined from 4.1% in December to 4.0% in January.

- Average Hourly Earnings m/m:
Average hourly wages increased by 0.5% from the previous month, surpassing expectations.

The rise in wages could impact consumer spending and future inflation. Meanwhile, the slowdown in job growth might prompt the Federal Reserve to delay interest rate cuts in the near term.

Additionally, President Donald Trump’s trade policies, such as tariffs and immigration controls, may influence future job growth and product prices.

Overall, the U.S. labor market remains resilient, but uncertainties persist.