The Labor Department has released its first jobs report of the year, covering January 2025. It shows that payrolls grew by 143,000 - somewhat lower than economists’ expectations of 175,000. On the other hand, payroll growth for the end of 2024 was revised up quite a bit. Over the past 3 months, payroll growth has averaged a very strong 234,000.

The economy added a mild 143,000 new jobs in January as massive California wildfires and a cold snap in much of the country acted as a drag on hiring. But the details of the employment report point to a robust labor market that gained strength at the end of 2024.

The January jobs report, to be released Friday morning by the Labor Department, will provide the first look at employment in 2025.

The US added 143,000 jobs in January, with a drop in unemployment. Find out why wage growth and job gains lead to a hawkish Fed outlook.

Economists are expecting an overall healthy reading, with 169,000 net new jobs created in the month and the unemployment rate holding steady at 4.1%. The January report includes annual benchmark revisions and updates to models that could affect the data.

The January nonfarm payrolls report is expected to continue the narrative of a still healthy labor market, "cooling, but still pretty warm," as Daniel Doderer, an economist and research director at Flack Global Metals,