February 2026 Jobs Report: Modest Growth to Start the Year

Ryann Rasmussen|February 13, 2026|Staffing Tips & Recruiting Trends

The U.S. Bureau of Labor Statistics (BLS) January jobs report reflects a labor market that continues to grow at a measured pace, with gains concentrated in a few industries. Overall hiring remains limited, and many sectors—including manufacturing and transportation and warehousing—showed little change to begin 2026.

Annual revisions also indicate that job growth in 2025 was lower than previously reported, providing additional context for how the labor market is entering the new year.

For employers, the data points to steady but moderate conditions, without significant shifts in overall labor availability.

Key takeaways from the January 2026 jobs report

130,000 jobs were added in January, up from the revised 48,000 jobs added in December.
Unemployment was 4.3%, with 7.4 million people unemployed, little changed over the month.
Labor force participation was 62.5%, essentially unchanged.
Average hourly earnings increased 0.4% in January and are up 3.7% over the past 12 months.
Annual revisions showed that total job growth in 2025 was lower than previously reported, revised from +584,000 to +181,000 after updated payroll data were incorporated.

Overall, the data shows moderate job growth to begin 2026 following a year of slower hiring than initially estimated.

Job growth by sector

Hiring in January was concentrated in a small number of industries.

Industries adding jobs:

Health care: +82,000
Social assistance: +42,000
Construction: +33,000

Industries losing jobs:

Federal government: –34,000
Financial activities: –22,000

Industries with little or no change:

Manufacturing
Transportation and warehousing
Wholesale trade
Retail trade
Mining, quarrying, and oil and gas extraction
Professional and business services
Leisure and hospitality
Information
Other services

Unemployment and labor force participation

The unemployment rate remained at 4.3% in January.

Additional labor supply indicators include:

Long-term unemployed (27+ weeks): 1.8 million (25.0% of all unemployed), up 386,000 over the year
People working part time for economic reasons: 4.9 million, down over the month but up 410,000 over the year
People not in the labor force who want a job: 5.8 million
Marginally attached to the labor force: 1.7 million
Discouraged workers: 475,000

Labor force participation and employment levels have shown little movement over the past year.

Major winter storms in January had no measurable effect on national employment, hours, or earnings data.

Wage growth and hours worked

Wage growth continued at a moderate pace in January.

Average hourly earnings: up 0.4% in January and 3.7% over the past 12 months
Average workweek (all private employees): 34.3 hours
Manufacturing workweek: 40.1 hours
Manufacturing overtime: 2.9 hours (unchanged)

The slight increase in hours worked suggests incremental scheduling adjustments rather than broad workforce expansion.

What employers can do now

Plan for steady demand

Employment is stable across many industries. Staff for steady volumes to protect productivity and service levels—avoid frequent ramp-ups and slowdowns when possible.

Monitor hours and scheduling trends

Hours worked edged up slightly in January. Watch overtime, open shifts, and attendance trends. These often show demand changes before headcount adjustments are needed.

Lead with stability to attract and keep workers

More workers are looking for consistent hours. Set clear expectations on schedule, start times, and overtime. Predictable scheduling supports both hiring and retention.

Build flexibility into your coverage plan

Labor competition varies by region and role. Use flexible options—cross-training, a standby list, or temp/seasonal coverage—to stay fully staffed when demand shifts.