US Economy Adds 49,000 Jobs, Unemployment Falls to 6.3 Percent

A customer walks out of a U.S. Post Office branch and under a banner advertising a job opening, in Seattle, Wash., on June 4, 2020. Elaine Thompson/File/AP Photo/

The U.S. economy added 49,000 more jobs than it lost in January after shedding a net 227,000 positions in December, suggesting tepid labor market recovery as many pandemic-related restrictions remain in place.

The Labor Department made the announcement in its Friday jobs report, which also showed that the unemployment rate fell from 6.7 percent in December to 6.3 percent in January. About half the drop in the unemployment rate occurred because some of those out of work found jobs, while others stopped looking for work and were no longer counted as unemployed.