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Economy Adds 130,000 Jobs, Beats Expectations

The U.S. economy kicked off 2026 with a pleasant surprise as employers added 130,000 new jobs in January, nearly double what economists predicted. The Labor Department released the delayed jobs report on Wednesday, February 11, 2026, revealing that the unemployment rate also dropped to 4.3%, lower than the expected 4.4%. The report was originally scheduled for release on Friday, February 6, but a brief partial government shutdown pushed it back. Despite initial concerns about a sluggish start to the year, the data provided encouraging signs that the labor market is stabilizing after what many economists called a “hiring recession” throughout 2025. Private sector companies led the charge, adding 172,000 jobs, while government payrolls declined by 42,000 positions due to federal workforce reductions.

Healthcare companies were the biggest job creators in January, adding an impressive 82,000 positions across ambulatory healthcare services, hospitals, and nursing facilities—more than double the sector’s average monthly gains from last year. Construction firms contributed 33,000 new jobs, and manufacturing surprised analysts by adding 5,000 positions when losses were expected. On the wage front, workers saw average hourly earnings increase 0.4% for the month and 3.7% over the past year. The stronger-than-expected hiring likely means the Federal Reserve will hold interest rates steady at its March meeting, though a potential rate cut could still happen in June. The labor force participation rate edged higher to 62.5%, showing more Americans are actively seeking work as confidence in the job market improves.

Source: https://www.washingtonpost.com/business/2026/02/11/jobs-report-labor-market/

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