The US Economy Shed 13K Jobs in January 2026

• Revelio Public Labor Statistics (RPLS) shows the economy lost approximately 13k jobs in January 2026. The loss was driven by Public Administration, Leisure and Hospitality and Retail Trade. Education and Health, Financial Services and Information show positive employment gains last month.

• Within these sectors, the employers with the largest declines were TJ Maxx and Burlington Stores in Retail, Starbucks and Inspire Brands (Dunkin’, Baskin-Robbins, etc.) in Leisure and Hospitality, the US Government as well as the City of New York City in Public Administration. On the positive side, the employers adding the largest number of jobs were Arizona State University and the University of California in Education and Health Services, Bank of America and Truist Financial in Financial Services, and ADP and SoundCommerce in the Information sector.

• Job openings continued to tick down in January, led by declines in the Information and Leisure and Hospitality sectors, as the United States remains at the forefront of cooling global labor demand.

• Salaries from new job postings ticked up notably in January, increasing by 2.5% from December 2025. Sectors driving the increase were Leisure and Hospitality, Mining and Oil Extraction and Manufacturing.

Employment

Revelio Labs Public Labor Statistics (RPLS) shows that the US economy lost approximately 13k jobs in January. The loss was driven by Public Administration, Leisure and Hospitality and Retail Trade. Education and Health, Financial Services and Information show positive employment gains last month.

Within these sectors, the employers with the largest declines were TJ Maxx and Burlington Stores in Retail, Starbucks and Inspire Brands (Dunkin’, Baskin-Robbins, etc.) Leisure and Hospitality, the US Government as well as the City of New York City in Public Administration. On the positive side, the employers adding the largest number of jobs were Arizona State University and the University of California in Education and Health Services, Bank of America and Truist in Financial Services, and ADP and SoundCommerce in the Information sector.

Layoff notices

We also observe a notable increase in the number of employees notified with layoffs as part of WARN layoff notices. The number of employers who issued notices increased by ~64% (from 218 in December to 358 in January 2026). The number of employees notified with layoffs increased from 15k employees in December to 33.2k in January.

The Retail sector saw the largest number of employees notified of layoffs in January 2026, primarily due to Amazon’s layoff announcements towards the end of the month. Manufacturing had the second largest number of employees notified with layoffs in January. Within manufacturing, layoffs were concentrated in Tyson Foods and Yokohama Rubber.

Hiring & attrition

Both the hiring and attrition rates ticked upward in January. However, both remain in a downtrend as the US economy continues to be characterized by a low-hire, low-fire environment. The sluggish hiring rate has made it especially difficult for workers entering the market or looking for a new job, fueling a deterioration in labor market confidence. New entrants have had an especially difficult time in the labor market, as older workers stick around longer and employers put an emphasis on experience over long-term potential.

Job postings

Labor demand continues to cool in the US, as the number of active job postings across the country ticked downwards again in January. Nearly all industries experienced a net decrease in job openings, with the largest declines in percentage terms occurring in the Utilities, Information, and Mining, Quarrying, and Oil and Gas Extraction sectors.

This years-long steady decline in job openings puts the United States at the forefront of cooling global labor demand, which we highlighted in a newsletter this week. Since January 2021, the total number of active postings has fallen 35%.

Looking at the total volume of job openings, the industries that were responsible for largest increases in headline labor demand from December to January were the Information, Leisure and Hospitality, and Professional & Business Services sectors. Within these sectors, major staffing firms, and retailers like Domino's Pizza and Starbucks saw some of the most significant declines.

Salaries from new job openings

Salaries from new job postings ticked up notably in January, increasing by 2.5% from December 2025. Sectors driving the increase were Leisure and Hospitality, Mining and Oil Extraction and Manufacturing. While these industries have seen weaker job demand, the calibre of jobs open in January increased. Within these sectors, Performance Food Group and Panera Bread from Leisure and Hospitality, Baker Hughes and Chevron for Mining and Mondelez and Stryker for Manufacturing were among the companies with the largest month-over-month increases in salaries in new job postings.

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