Key Points:
Government hiring played a relatively large role in nonfarm employment growth over the past year.
- While government workers account for 15% of total employment, 22% of total employment growth from Jan. 2024 was attributable to government.
- Private goods-producing workers – a group that makes up 14% of total employment – accounted for only 3% of total employment growth.
Cumulative Employment Growth: Jan. 2024 to Jan. 2025
The headline unemployment rate fell to 4.0% in January.
- U-1, an alternative unemployment measure that covers workers that are unemployed for 15 or more weeks, fell to the lowest level since May.
- The U-1 rate rose significantly over the second half of 2024 and remains somewhat above the 1.3% average rate seen over 2019.
U-1 (15+ Week Unemployment Rate)
