The US labor market continued to expand at the start of 2025, with private-sector employment rising by 183,000 jobs in January — well above the expected 150,000 gain.
December’s job total was revised up to 176,000, lifting the six-month average to its highest level since early 2023. Job additions were concentrated largely in service-oriented industries: trade, transportation, and leisure led hiring, while manufacturing registered a decline.
Within goods-producing industries, construction and mining contributed to gains. Wage growth remained steady: workers who changed jobs saw average pay increases of 6.8% year-over-year, while those who stayed in the same role received roughly 4.7% higher pay compared with a year earlier.
This robust employment start to 2025 highlights a widening gap between consumer-facing industries, which are hiring strongly, and business services sectors, which are growing more slowly. That divergence could factor into future monetary policy decisions as policymakers weigh inflationary pressures against labor market resilience.
Overall, the data suggest the labor market is resilient, showing continued demand for workers in key service sectors even as manufacturing softens. Employers in trade, transportation and leisure appear to be driving much of the early-year momentum, while steady wage gains indicate ongoing competition for talent across many occupations. Observers will watch coming reports for signs of further broadening or cooling that might clarify the trend and its implications for economic policy.