January’s jobs data just sent a pretty clear signal: the job market is slowing down.
Private-sector job growth came in at just 22,000 for the month, missing every economist forecast. December was revised lower too, making this cooldown officially a trend.
The big picture is a labor market that looks stable, but stagnant.
Layoffs remain relatively limited based on unemployment claims, yet hiring momentum is clearly fading. And recent job-cut announcements from companies like Amazon and Dow are reinforcing that caution.
Wages tell a similar story. Pay growth for job-changers cooled to 6.4% YoY, while job-stayers saw a modest pickup, another sign that labor demand is easing.
Going forward, job growth will remain an important indicator to watch, particularly as accelerating AI adoption has the potential to reshape workforce needs and slow the pace of future hiring.
