US non-farm payrolls surprised to the upside in January, rising 130k against expectations for just 66k. The gain was also well above the 15k average monthly increase seen through 2025.
Unemployment rate edged down from 4.4% to 4.3%, beating forecasts for no change, while the participation rate ticked up 0.1 percentage point to 62.5%. The combination suggests labor supply and demand both strengthened modestly at the start of the year.
Wage pressures also remained firm. Average hourly earnings rose 0.4% month-on-month, above the 0.3% consensus, with annual wage growth holding at 3.7% yoy. For markets, the report challenges expectations of rapid Fed easing and reinforces the narrative of a labor market that remains resilient.
