In January, U.S. employers added only 143,000 jobs, below the anticipated 170,000, leading to a decline in the unemployment rate to 4%, signaling a slowdown in the labor market. Average hourly wages rose by 0.5% from December, marking a 4.1% increase since January 2024, reflecting inflationary pressures. The Labor Department revised job creation figures downward by 589,000 for the prior year, indicating a less robust job market than initially reported. New job growth primarily came from the healthcare, retail, and government sectors, which collectively contributed 77% of the new jobs in January, showcasing where employment expansion is concentrated despite the overall deceleration.