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U.S. labor market activity showed improvement in January, according to data highlighted by Joseph Politano. The hiring rate increased to 3.3%, layoffs declined to 1.0%, quits dropped to 2.0%, and job openings rose to 4.2%.
Politano noted that while labor market flows remained sluggish, conditions have improved compared to late-2025 lows.
These improvements in the labor market arrive amid broader economic developments observed over the past year, including a record-setting U.S. trade deficit surpassing $1 trillion in 2025 and a pronounced decline in office construction investment. As hiring trends strengthen, attention remains focused on whether these positive indicators signal the start of sustained momentum following last year’s setbacks across trade and construction sectors.