Surprise! The U.S. economy added 130,000 jobs in January.

That was a far larger number than what economists were predicting. Many forecasts saw job growth clocking in around 55,000 last month.

In another positive sign, the unemployment rate for January ticked down a notch, to 4.3%.

Health care continues to be a bright spot for the economy, adding 82,000 jobs in January, thanks to growth among ambulatory services and hospitals. Social assistance services added 42,000 jobs, and construction created 33,000 jobs, despite harsh cold in many parts of the country.

“I found it surprising, a very pleasant surprise,” said David Kass, clinical professor of finance at the University of Maryland. “It sort of indicates a fair amount of resilience in the U.S. economy. It certainly defied most experts’ forecasts.”

Kass knows something about federal employment. He worked more than a quarter-century as an economist for the Federal Trade Commission, the Department of Defense and the Commerce Department.

Despite the rosy employment news, federal workers had little reason to cheer.

Federal government employment declined 34,000 in January, as some workers who deferred their resignation packages in 2025 finally came off Uncle Sam’s payroll.

Since hitting its peak in the fall of 2024, federal employment has fallen by 327,000 or 10.9%.

“I would anticipate a continued slowdown in that sector, probably additional erosion,” Kass said. “Going forward, I don’t see anything immediately on the horizon to reverse this trend, so it should continue for a while.”

There may be some bright news for federal workers, Kass said, if they’re willing to look for work beyond the government.

He pointed out unemployment is relatively low in most of the D.C. area.

In December, data showed the unemployment rate for the District was 6.7%. In Maryland, joblessness sat at 4.2% and 3.6% in Virginia.

“Certainly, we have a very vibrant private sector in the DMV,” Kass said.

The January jobs data is posted on the Bureau of Labor Statistics’ website.