Nightmarish labor market finally shows signs of letting up—and some ‘vindication’ for Jerome Powell

If 2025 was the year of the labor market’s long winter, January provided the first thaw—along with a bit of a victory lap for outgoing Federal Reserve Chair Jerome Powell.

U.S. employers added 130,000 jobs in January, roughly double economists’ expectations and the strongest headline print in months, offering an unexpectedly upbeat start to a year that made Maria Bartiromo exclaim “Wow,” on Fox Business. 

Health care alone added 82,000 jobs in January, while social assistance contributed another 42,000.