News

Labor Secretary Highlights Construction Gains as Federal Workforce Reaches 1966 Low

The economy added 130,000 total nonfarm jobs in January, including 172,000 private sector positions. Federal employment fell by 34,000 to 2.686 million—lowest since 1966.

onthelaborfront

11 Feb 2026 — 2 min read

The U.S. Bureau of Labor Statistics reported 130,000 total nonfarm jobs added in January 2026, exceeding economist expectations of 70,000. The unemployment rate decreased to 4.3% from December's 4.4%.

Labor Secretary Lori Chavez-DeRemer attributed the employment gains to administration policies. Private sector employment increased by 172,000 while total government employment declined. The construction sector added 33,000 jobs, with 25,000 positions in nonresidential specialty trade contractors.

Federal government employment declined by 34,000 in January as deferred resignations from 2025 took effect. Since October 2024, federal employment has decreased by 327,000, or 10.9%, bringing total federal workforce to 2.686 million—the lowest level since May 1966 and the smallest as a percentage of total workforce in recorded history.

The BLS also released annual benchmark revisions showing total employment for the period April 2024 through March 2025 was revised downward by 898,000 jobs on a seasonally adjusted basis. For calendar year 2025, total job growth was revised from 584,000 to 181,000, averaging just 15,000 jobs per month.

Health care led job gains with 82,000 positions added, followed by social assistance with 42,000. Financial activities lost 22,000 jobs, continuing a decline from a May 2025 peak. Employment in construction was essentially flat throughout 2025 before the January increase.

Secretary Chavez-DeRemer referenced the Working Families Tax Cuts signed into law July 4, 2025, as supporting business expansion. The legislation includes provisions such as no tax on tips, overtime, and Social Security benefits, along with expanded standard deductions and child tax credits.

Key Points

Total nonfarm payroll employment increased by 130,000 in January 2026
Private sector added 172,000 jobs
Federal government employment declined by 34,000 in January
Nonresidential specialty trade contractors added 25,000 positions
Federal workforce reached 2.686 million, lowest level since May 1966
Unemployment rate fell to 4.3% from 4.4% in December
Annual benchmark revision reduced 2024-2025 employment estimates by 898,000 jobs
Construction employment was flat in 2025 before January's 33,000-job increase
Health care sector led gains with 82,000 new positions

Primary Source Author: U.S. Secretary of Labor Lori Chavez-DeRemer

Primary Source: Secretary Chavez-DeRemer Statement on January Jobs Report

Primary Source Link: https://www.dol.gov/newsroom/releases/osec/osec20260211