US Jobless Rate Falls to 4.3% in January

The US unemployment rate ticked down to 4.3% in January 2026 from 4.4% in December, coming in slightly below market expectations of 4.4%. The number of unemployed declined by 141,000 to 7.36 million, while total employment rose by 528,000 to 164.52 million. The labor force expanded by 387,000 to 171.88 million, lifting the participation rate by 0.1 percentage point to 62.5%. Meanwhile, the broader U-6 measure of unemployment, which includes discouraged workers and those working part-time for economic reasons, fell to 8.0% from 8.4% in the previous month.

The US unemployment rate edged down to 4.4% in December 2025, from a revised 4.5% in November, which had marked the highest level since October 2021. The reading also came in slightly below market expectations of 4.5%. The number of unemployed fell by 278,000 to 7.50 million, while employment increased by 232,000 to 163.99 million. Meanwhile, the labor force declined by 46,000 to 171.50 million, pushing the labor force participation rate down 0.1 percentage point to 62.4%. The broader U-6 unemployment rate, which includes discouraged workers and those working part-time for economic reasons, eased to 8.4% in December from 8.7% in November, pointing to some improvement in underlying labor market slack.

The US unemployment rate increased to 4.6% in November 2025 from 4.3% in August, exceeding market expectations of 4.4% and marking the highest level since September 2021. The number of unemployed stood at 7.8 million, little changed from September, while employment levels were also broadly stable. The labor force participation rate was little changed at 62.5%, reflecting a largely steady labor force. The broader U-6 unemployment rate in the United States, which includes discouraged workers and those working part-time for economic reasons, rose in November, reflecting a sharp increase in involuntary part-time employment.