We’re launching a monthly jobs report series because we know national headlines don't always reflect what's happening in your own small business. Our goal is to cut through the noise and break down complex labor data into clear, industry-specific insights that help you make confident decisions for your business’s future. Here’s our take on January’s report.

one big thing

Predictability is back on the table. After the volatility of recent years, January’s data shows a labor market that is finally finding its footing. For business owners, this means a window of stability and predictability. With unemployment holding steady at 4.3% and job growth concentrated in key service sectors, the environment is shifting from a reactive and chaotic phase to a proactive planning phase. It is the right moment to stop reacting to the market and start thinking about long-term strategic growth.

The january breakdown: steady and sector-driven

According to the U.S. Bureau of Labor Statistics, the U.S. economy added 130,000 jobs in January. While the headline number shows moderate growth, the real story for small businesses lies in where those jobs are:

• Healthcare is the Engine: This sector added 82,000 jobs, far outpacing any other industry. At Live Oak Bank, we see this daily in our veterinary, dental, and senior care portfolios. Demand is high, but the competition for skilled talent remains the primary hurdle to expansion.
• Construction Rebound: Construction added 33,000 jobs. This is a positive signal for owners looking to renovate, build new facilities, or expand their physical footprint. More boots on the ground could mean more predictable project timelines, though labor constraints aren’t gone.
• Wage Growth is Normalizing: Average hourly earnings rose 0.4% in January. While costs aren't falling, the pace of the increase is becoming more manageable, allowing for better long-term budget forecasting.

Actionable Steps for Small Business Owners

Consider these data-driven recommendations to position your business for success.

• Treat Staffing as a Financial Asset: In labor-tight sectors like healthcare, your people are your profit. Plan accordingly.
• Beat the Timeline Lag: Extended lead times in construction and hiring are the new normal. Early capital planning is your primary hedge.
• Use industry‑specific insights, not just national numbers
  Many Live Oak Bank sectors (veterinary, healthcare, self‑storage) continue to outperform the broader labor market.