Stocks on Wall Street surged after new figures showed the economy added 130,000 jobs last month.

Economists had expected the Labor Department to report job growth of around 75,000 – only a modest improvement on December’s weak 50,000 and far below levels typically associated with strong economic expansion.

January’s unemployment rate came in at 4.3 percent – marginally lower than the consensus estimate of 4.4 percent. 

Alongside the January data, the Bureau of Labor Statistics revised its total 2025 payrolls figure down to 184,000 jobs added for the year – well below the previously reported 584,000 gains, which had already represented the smallest increase since 2020, according to Bloomberg. 

The better than expected report – with more jobs created than expected and a sight fall in the unemployment rate – created sent stocks soaring.  

Futures tied to the Dow Jones Industrial Average rose about 0.4 percent, building on a third consecutive record close. Likewise, contracts for the S&P 500 and the tech-heavy Nasdaq 100 advanced roughly 0.4 percent as well. 

Overall hiring rose – but the gains were heavily concentrated in a few areas that masked losses elsewhere.

Half of the gains – 82,000 – came from new healthcare jobs, including 50,000 in outpatient services, 18,000 in hospitals and 13,000 in nursing homes.

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Social assistance followed with a 42,000 increase, mostly in family services, while construction added 33,000 roles driven by specialty trade contractors.

Federal government payrolls fell by 34,000 in January and are now down 327,000 – nearly 11 percent – since peaking in October 2024. Financial services also shed 22,000 jobs, with insurance firms among the hardest hit.

Industries that shed jobs in January included transportation and warehousing – down 11,000 positions, information – which declined by 12,000, and financial activities – which saw a reduction of 22,000 jobs. 

Investors were focused on the ‘Super Bowl of jobs reports’ – the delayed January nonfarm-payrolls update. After a bruising recent run of labor market data, a subdued reading was expected.

Private data released last week suggested the labor market remained tough in January for unemployed Americans, with few new job opportunities available. 

While estimates varied widely, economists surveyed by Bloomberg projected a gain of about 68,000 jobs in the Bureau of Labor Statistics release scheduled for 8:30 am ET on Wednesday morning.  

This report makes it easier for the Federal Reserve to keep interest rates where they are when officials meet again in March. The Fed had already paused its recent rate cuts last month.

Before the January report came out, some Fed officials – including Chair Jerome H. Powell – said the job market seemed to be steadying and sounded more optimistic about the economy. The new data supports that view. It also gives officials who are more worried about rising prices a stronger reason to argue against lowering rates anytime soon.