The U.S. jobs market added 143,000 jobs in January, a decrease from the 2024 average. While the unemployment rate fell to 4%, a concerning trend emerged with rising unemployment rates among Black and Asian workers, as well as those with disabilities. Despite this, real wages continued to improve, outpacing inflation.
The U.S. unemployment rate dipped slightly in January, falling by 0.1 percentage points to 4% compared to December. The U.S. economy added 143,000 jobs during the month, a figure slightly below the average monthly gain of 186,000 jobs seen throughout 2024. While this pace is somewhat lower than historical norms, which see the U.S. adding an average of 1.9 million jobs annually or 160,000 per month, the 2024 performance still exceeded typical expectations.
The unemployment rate has maintained a relatively stable range over the past two years, hovering around 4% throughout 2024.However, a concerning trend emerged during the past year: a noticeable increase in Black unemployment, particularly among Black men. While the unemployment rate for White workers increased by a mere 0.1 percentage points between January 2024 and January 2025, the Black unemployment rate climbed from 5.3% in January 2024 to 6.3% last month. Furthermore, the unemployment rate among Black men over the age of 20 surged from 5.4% in January 2024 to 6.9% in January 2025.There was also an uptick in unemployment among Asians in the U.S., with their unemployment rate rising from 2.9% in January 2024 to 3.7% last month. Similarly, the unemployment rate for individuals with disabilities increased from 6.6% in January 2024 to 8.5% last month. In contrast, those without a disability experienced a more modest increase in their unemployment rate, rising by only 0.3% from 3.9% in January 2024 to 4.2% in January 2025. On a positive note, U.S. workers continued to see improvements in their earnings relative to inflation. At the beginning of 2025, U.S. workers earned 4.1% more per hour compared to the start of 2024. Additionally, their weekly earnings increased by 3.8% at the start of 2025 compared to a year prior
Unemployment Rate Job Growth Wages Inflation Black Unemployment Asian Unemployment Disability Unemployment
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