US January non-farm payrolls and unemployment rate data: Non-farm payrolls increased by 130,000 in January, while the unemployment rate remained slightly unchanged at 4.3%. Job growth was primarily driven by healthcare, social assistance, and construction. The seasonally adjusted total non-farm payrolls for March 2025 were revised down by 898,000. The higher-than-expected job growth, lower-than-expected unemployment rate, and lower-than-expected seasonal revision for March 2025 are all clear signs of an improving labor market. It seems that Hassett's previous statements were intended to dampen market expectations and project a pessimistic outlook, but the data is actually quite positive, even employing a strategy of building optimism before optimism. A series of new reports released last week indicated that the labor market may deteriorate further with increased layoffs and fewer job openings. However, the latest data will help reinforce Federal Reserve Chairman Powell's argument that the labor market is showing signs of stabilization. While the strong labor data may reduce expectations of interest rate cuts, there are also arguments that the significant increase in January's non-farm payrolls may be partly due to a downward revision of the previous year's data. While I personally have some doubts about the unusually good data, it has boosted confidence in markets worried about an economic recession.