The United States job market cooled in January, adding 143,000 jobs, falling short of the 170,000 forecast by economists.
This followed an upwardly revised gain of 307,000 jobs in December, the highest in nearly two years.
The unemployment rate held steady at 4.0%, likely giving the Federal Reserve further reason to delay interest rate cuts until at least June.
Despite the slowdown in hiring, wage growth remained strong, with average hourly earnings rising 0.5% - the highest increase in five months - boosting consumer spending.
The labour market remains a key driver of economic expansion, but concerns are mounting over potential headwinds. President Donald Trump’s proposed tariffs and stricter immigration policies could slow job creation and economic growth in the coming months.
Weather-related disruptions also played a role in January’s employment data. While the Bureau of Labor Statistics (BLS) noted no significant impact on payroll figures, 573,000 workers were absent due to severe conditions, the highest January figure since 2011.
The hospitality sector, particularly restaurants and bars, lost 15,700 jobs, likely due to the adverse weather and California wildfires.
Healthcare continued to lead job growth, adding 44,000 positions across hospitals, nursing care, and home healthcare services.
Retail employment saw a boost of 34,000 jobs, mainly in general merchandise stores, while social assistance roles grew by 22,000.
Government employment increased by 32,000, but this sector may face cuts as the Trump administration moves to reduce federal jobs.
Meanwhile, the Fed, which left its benchmark interest rate unchanged at 4.25% - 4.50% last month, is in no rush to cut rates further.
The central bank has reduced rates by 100 basis points since September to support economic stability.
Financial markets anticipate a possible rate cut in June, but resilient employment data and strong wage growth may influence the timing of any policy shifts.
