130K Jobs Added, 898K Cut In Revision, Dow ETF Hits Record Highs
January payrolls surged by 130,000, exceeding the 70,000 projection, but sweeping benchmark revisions wiped out 898,000 jobs from April 2024 to March 2025, trimming annual nonfarm gains to 181,000. Unemployment fell to 4.3% and wages rose 0.4% monthly and 3.7% yearly, boosting Dow ETF to record highs.
1. Employment Growth and Revisions
Data showed U.S. nonfarm payrolls increased by 130,000 in January, surpassing the 70,000 estimate, while benchmark revisions removed 898,000 positions from April 2024 through March 2025, cutting total 2025 job gains from 584,000 to 181,000 and sending the unemployment rate down to 4.3%.
2. Sectoral Shifts
Private sector payrolls jumped by 172,000, led by gains of 82,000 in health care, 42,000 in social assistance and 33,000 in construction, while federal government and financial activities shed 34,000 and 22,000 jobs respectively; average hourly earnings for private employees rose 0.4% month-over-month and 3.7% year-over-year.
3. Market Reaction
Equity futures rallied with Nasdaq 100 up nearly 1% and S&P 500 futures up 0.5%, driving Dow Jones futures higher and sending the Dow ETF to record closing highs as investors recalibrated on stronger economic momentum.