Health care a leading sector for adding jobs in January 2025 unemployment report

© Olivier Le Moal - stock.adobe.com

Health care was a leading sector for job creation in January this year, according to the latest report from the Bureau of Labor Statistics (BLS) in the U.S. Department of Labor.

However, the monthly addition of 43,700 new positions trailed the average monthly gain of 57,000 a month in 2024, according to the BLS figures.

The first month of the year included the last days of the administration of President Joe Biden and the opening of the second term for President Donald J. Trump. January 2025 had a nationwide jobless rate of 4%, with an estimated 6.8 million people unemployed in the workforce. Employers added 143,000 jobs last month, similar to the average monthly gain of 166,000 in 2024, the report said.

Within the health care sector, hospitals led with 13,900 new jobs, followed by nursing and residential care facilities with 13,200 new positions. Home health services grew by 10,600 jobs, while offices of dentists added 8,000 jobs and skilled nursing care facilities added 7,100 workers.

Offices of physicians hired 2,200 new workers, while medical and diagnostic laboratories added 600 staff. Employment in outpatient care centers dipped by 2,400, while offices of other health practitioners and other ambulatory health care services each lost 1,200 posts, the report said.

Other sectors

In other sectors, retail trade grew by 34,000 in January, with general merchandise retailers adding 31,000 new workers. BLS said retail trade employment showed little net change in 2024.

Social assistance grew by 22,000 workers last month, with individual and family services leading that sector with 20,000 new jobs. Social assistance work grew by an average of 20,000 a month in 2024.

Government employment expanded by 32,000 workers, down slightly from the average monthly gain of 38,000 new staffers last year. BLS reported little change month-to-month in other sectors including construction, manufacturing, wholesale trade, transportation and warehousing, information services, financial services, professional and business services, leisure and hospitality, and other services.

White House reaction

In a statement, White House Press Secretary Karoline Leavitt said: “Today’s jobs report reveals the Biden economy was far worse than anyone thought, and underscores the necessity of President Trump’s pro-growth policies.”

During his first weeks in office, President Trump declared a national energy emergency to Make America Energy Dominant Again, pledged to cut 10 regulations for every new regulatory action, and outlined a plan to deliver the largest tax cut in history for hardworking Americans,” Leavitt said. “President Trump is delivering on his promise to restore our broken economy, revive small business optimism, create jobs, and ignite a new Golden Age for America.”

Immigration and weather

The change in administration brings forward new policies and priorities as the president pledged to crack down on illegal immigration on the southern border. The BLS report included a frequently asked questions section that noted the employment survey likely includes at least some undocumented immigrants. However, the BLS report, with data compiled from businesses and households, is not designed to identify the legal status of workers.

The BLS report acknowledged the wildfires that have devastated southern California, and the severe cold that froze parts of the nation in January this year. But the disaster and weather conditions weren’t a factor in the January jobs report.

“These events had no discernible effect on national payroll employment, hours, and earnings from the establishment survey, nor on the national unemployment rate from the household survey. Response rates for the two surveys were within normal ranges,” the report said.