U.S. employers added a surprisingly strong 130,000 jobs last month, but government revisions cut 2024-25 U.S. payrolls by hundreds of thousands. The Labor Department said Wednesday that the unemployment rate fell to 4.3%. The report included major revisions that reduced the number of jobs created last year to just 181,000, weakest since the pandemic year of 2020, and less than half the previously reported 584,000. The job market has been sluggish for months even though the economy is registering solid growth.

U.S. job openings fell to the lowest level in more than five years, another sign that the American labor market remains sluggish. The Labor Department reported Thursday that vacancies fell to 6.5 million in December — from 6.9 million in November and the lowest since September 2020. Layoffs rose slightly. The number of people quitting their jobs — which shows confidence in their prospects — was basically unchanged at 3.2 million.

When Amazon announced it was cutting 16,000 corporate jobs, many assumed it was the latest phase of CEO Andy Jassy's push to reduce the corporate workforce as AI brings more efficiency gains. But like other companies that have tied major workforce changes to AI — including Pinterest and Dow — it can be hard for economists, or individual employees, to know if AI is the real reason or the message a company wants to tell Wall Street. Amazon said in a statement that AI wasn't the reason "behind the vast majority" of the layoffs.