The US economy added 143,000 jobs in January, falling short of economists’ expectations of 170,000, according to the first jobs report of Donald Trump’s second presidency.

Despite the slowdown in hiring, the unemployment rate edged down to 4%.

Job growth in January was weaker compared to December’s 307,000 and November’s 261,000 additions. The labour market, while stable, is cooling from the hiring boom of 2021-2023, making job searches more challenging.

Wage growth outpaced expectations, with average hourly earnings rising 0.5% from December and 4.1% year-on-year. While this may concern Federal Reserve officials focused on inflation control, productivity gains have helped offset inflationary pressures.

Employment growth varied by sector. Healthcare companies added 44,000 jobs, retail hired 34,000, and government payrolls increased by 32,000. However, mining companies cut 8,000 jobs.

The Labour Department revised job gains for November and December upwards by 100,000, reinforcing confidence in economic stability.

Analysts at High-Frequency Economics noted no immediate economic concerns but suggested the Fed may delay further interest rate cuts.

Policy decisions under Trump could impact future employment trends. His federal hiring freeze, imposed on January 20, is expected to dampen job growth. Additionally, his trade policies, including tariffs on imports, could fuel inflation and disrupt economic stability.

Overall, job growth has slowed, with 2 million jobs added in 2024 compared to 2.6 million in 2023. With fewer job openings and declining worker confidence in job-switching, the labour market’s trajectory remains uncertain.