Health care was a bright spot once again for the U.S. economy in January, even as overall job growth showed signs of slowing.
Data on job growth in different areas of the economy from the Bureau of Labor Statistics showed health care and social assistance as the leading category, adding 66,000 jobs. Retail trade and government were also strong, adding more than 30,000 jobs apiece.
The gains in health care were broadly in line with the growth rates from 2024. The jump in retail jobs was more surprising, as that sector showed “little net change” last year, according to the bureau.
There were some pockets of weakness, with professional and business services losing 11,000 jobs. Employment in leisure and hospitality, one of the biggest areas of job growth after the Covid pandemic, also shrank slightly.
Overall, the net job growth of 143,000 was well below the upwardly revised growth of 307,000 in December. However, the unemployment rate fell and wage growth was strong, pointing to a solid and steady job market despite the lower headline number.
Looking at January, “what we see is a labor market that’s basically operating at full employment. And so I think the real question going forward is: Can we sustain full employment?” University of Michigan professor and former Department of Labor chief economist Betsey Stevenson said Friday on “Squawk Box.”
