The U.S. unemployment rate dropped in January by 0.1 percentage point compared to December to 4% as the U.S. added 143,000 jobs during the month.
The 143,000 jobs added in January were somewhat below what was typical for 2024. In 2024, an average of 186,000 jobs were gained per month; however, the year beat historic norms. In the last decade, the U.S. typically adds 1.9 million jobs per year, or 160,000 workers per month. The unemployment rate has generally held steady over the last two years. The unemployment rate was around 4% throughout all of 2024.
One troubling trend was a notable increase in Black unemployment in the last year, especially among Black men. While the unemployment rate for White workers increased by just 0.1 percentage points between January 2024 and January 2025, the Black unemployment rate rose from 5.3% in January 2024 to 6.3% last month. The unemployment rate among Black men over age 20 rose from 5.4% in January 2024 to 6.9% in January 2025.
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There was also an increase in unemployment among Asians in the U.S., with their unemployment rate increasing from 2.9% in January 2024 to 3.7% last month. The unemployment rate for those with a disability also increased from 6.6% in January 2024 to 8.5% last month. Those without a disability had their unemployment rate increase by a mere 0.3% from 3.9% in January 2024 to 4.2% in January 2025.
U.S. workers also continued to see their earnings improve relative to inflation. U.S. workers were making 4.1% more per hour at the start of 2025 than at the start of 2024. Workers were also earning 3.8% more per week at the start of 2025 compared to a year prior.
