Private-sector employment saw a significant boost, adding 183,000 jobs in January. This data comes from the latest employment report, which is based on payroll information from over 25 million U.S. employees. The report also indicates a year-over-year wage growth of 4.7%.
Job Growth Trends and Industry Insights
The hiring momentum from late 2024 persisted into January; however, growth varied across sectors. Consumer-oriented industries led the job market expansion, while areas such as business services and manufacturing reported less favorable outcomes.
Industry Employment Changes:
- Goods-producing sectors: -6,000 jobs
- Natural resources/mining: +4,000
- Construction: +3,000
- Manufacturing: -13,000
- Service-providing sectors: +190,000 jobs
- Trade/transportation/utilities: +56,000
- Leisure/hospitality: +54,000
- Education/health services: +20,000
- Professional/business services: +14,000
- Information: +18,000
- Financial activities: +13,000
- Other services: +15,000
Regional Employment Trends
- Northeast: +22,000
- Midwest: +64,000
- South: +50,000
- West: +70,000
Job Growth by Business Size
- Small businesses (1-49 employees): +39,000
- Medium businesses (50-499 employees): +92,000
- Large businesses (500+ employees): +69,000
Wage Growth Stability
Wage increases held steady in January.
- Job stayers saw a median annual pay rise of 4.7%.
- Job changers obtained a 6.8% wage increase.
Median Annual Pay Growth by Industry (Job-Stayers):
- Construction: 5.0%
- Manufacturing: 4.9%
- Education/health services: 5.0%
- Leisure/hospitality: 4.8%
- Financial activities: 5.0%
Median Annual Pay Growth by Company Size (Job-Stayers):
- Small firms (1-19 employees): 2.9%
- Medium firms (50-249 employees): 5.0%
- Large firms (500+ employees): 5.0%
Labor Market Outlook
While the overall job market appears strong, disparities persist among industries, with certain sectors still grappling with hiring difficulties.
“January marked a robust start to 2025 but highlighted a dichotomy within the labor market,” said an expert. “Consumer-facing industries led in job creation, while business services and production lagged behind.”
