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Strong Start To 2026 As US Hiring Jumps Sharply, Unemployment Falls To 4.3%
Strong Start To 2026 As US Hiring Jumps Sharply, Unemployment Falls To 4.3%
Hiring in the US picked up sharply at the start of 2026, surprising economists and marking a strong rebound from last year's sluggish labour market, according to the latest jobs report. The US added 130,000 jobs in January, a sharp rise from 50,000 jobs in December, data from the Bureau of Labor Statistics (BLS) showed. The unemployment rate also edged lower, falling to 4.3% in January from 4.4% in December, remaining low by historical standards.
Big Improvement After Weak Hiring In 2025
The strong January performance comes after a difficult year for the US labour market. Hiring slowed sharply in 2025, raising concerns about the health of the world's largest economy and prompting the Federal Reserve to cut interest rates multiple times. The BLS also revised down its earlier estimates for job creation in 2025. According to updated figures, the US added 181,000 jobs last year, averaging about 15,000 jobs per month. This was far below the agency's earlier estimate of 584,000 jobs for the year. Against that backdrop, January's hiring numbers were well above the pace seen in a typical month last year.
Trump Reacts As Jobs Beat Forecasts
Reacting to the report, US President Donald Trump praised the data in a social media post, saying, “GREAT JOBS NUMBERS, FAR GREATER THAN EXPECTED!"
The strong hiring data follows weeks of high-profile job cuts by major companies. Amazon recently announced plans to cut around 16,000 employees as part of a restructuring effort. UPS said it would slash up to 30,000 jobs this year, while Pinterest revealed plans to cut 15% of its workforce.
Analysts say these layoffs are largely concentrated in tech and logistics, where companies are rolling back pandemic-era hiring and adapting to automation and artificial intelligence. So far, the broader US labour market has avoided widespread job losses.
What Fed Is Watching
The Federal Reserve cut interest rates three times in 2025 to support the slowing labour market. In January, however, it chose to pause rate cuts, citing sticky inflation. The benchmark interest rate currently stands between 3.5% and 3.75%, well below its 2023 peak but still much higher than near-zero levels seen during the COVID-19 pandemic.
Fed Chair Jerome Powell said last month that the US economy is expanding at a “solid pace," adding that while job growth has been modest, unemployment appears to be stabilising.
Source: News18
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