The Labor Department has released its first jobs report of the year, covering January 2025. It shows that payrolls grew by 143,000 — somewhat lower than economists’ expectations of 175,000. On the other hand, payroll growth for the end of 2024 was revised up quite a bit. Over the past 3 months, payroll growth has averaged a very strong 234,000.

A slight cooling off of the labor market saw job creation falling behind expectations, but the unemployment rate dipped slightly too, Bureau of Labor Statistics data show.

While the headline number missed estimates, the January jobs report showed signs of strength investors think will keep rates higher for longer.