U.S. economy adds 49,000 jobs in January as unemployment rate declines to 6.3 percent


The U.S. economy gained jobs last month, but showed "sluggish" improvement almost a year into the coronavirus crisis.
The Labor Department said Friday the U.S. economy added 49,000 jobs in January, while the unemployment rate declined from 6.7 percent to 6.3 percent. Economists were anticipating about 50,000 jobs would be added, though some projected a higher number, CNBC reports.
The Friday report comes after the economy previously lost 140,000 jobs in December in the first monthly loss in jobs since April, though that number was later revised to 227,000, per The New York Times. The number for January signaled a "sluggish recovery," CNN reported, while NBC News wrote that it pointed to the recovery's "ongoing fragility."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Though we gained jobs in January after a December loss, this is not a we've-turned-the-corner report," said Navy Federal Credit Union economist Robert Frick, per CNBC. "We especially shouldn't take solace that the unemployment rate fell dramatically given that's mainly because more Americans dropped out of the labor force."
Glassdoor senior economist Daniel Zhao also said that while the economy gained jobs, the improvement was "sluggish as the pandemic continues to restrain the economic recovery." Zhao added, "While the economic recovery is rebooting, it's still coming off a cold start."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
The genetic secrets of South Korea's female free-divers
Under The Radar Unique physiology of 'real-life mermaid' haenyeo women could help treat chronic diseases
-
Democrats: How to rebuild a damaged brand
Feature Trump's approval rating is sinking, but so is the Democratic brand
-
Unraveling autism
Feature RFK Jr. has vowed to find the root cause of the 'autism epidemic' in months. Scientists have doubts.
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine