Special Poll
The U.S. job market started 2025 with steady growth as the economy added 143,000 jobs in January, bringing the unemployment rate down to 4%, according to the Labor Department. While hiring slowed compared to the final months of 2024, the labor market remains strong, helping to ease concerns about an economic slowdown.
The latest report also included annual revisions to past data, revealing that 2024 job growth was overestimated by approximately 590,000 jobs. This adjustment was widely anticipated and aligns with expectations from economists.
The Federal Reserve recently decided to keep interest rates unchanged after previous rate cuts, pointing to a stable economy and a labor market that provides flexibility in determining future policy moves. Officials are closely watching how economic conditions evolve before making further adjustments.
Another key factor shaping the economy is the potential impact of new policies. Trade tensions, particularly with China, remain a concern. While the risk of a North American trade war has diminished for now, China is preparing to impose 15% tariffs on select U.S. goods in the coming week, which could increase inflationary pressures and affect hiring trends.
Despite these uncertainties, the labor market entered 2025 in a strong position. The economy’s resilience has defied many expectations of a slowdown, but questions remain about whether this momentum will continue in the months ahead.