The U.S. economy added 130,000 jobs in January, exceeding expectations, while the unemployment rate fell slightly to 4.3%, according to Labor Department data.

However, revised figures show that 2025 overall saw just 181,000 jobs added, the slowest annual growth outside a recession since 2003, with much of January’s gains concentrated in healthcare and construction.

Government jobs continued to decline at the federal, state, and local levels, and economists warned that the headline numbers overstate labor market strength.

Revisions to prior months cut December and November payroll growth, highlighting the long-term weakness in job creation, Yahoo Finance has reported.

Despite the disappointing annual data, White House officials touted January’s strong report as evidence that the Trump administration’s economic policies were working.