It was announced that U.S. nonfarm payrolls increased by 130,000 in January, well above the consensus estimate of roughly 55,000 jobs, highlighting a stronger-than-expected start to 2026 for the labor market. The unemployment rate fell to 4.3% from 4.4%, a modest but meaningful improvement versus expectations, signaling that hiring continued at a steadier pace than economists had anticipated. Healthcare led the charge (a persistent trend), accounting for 82,000 of the new positions. The construction sector added 33,000 jobs, a notable acceleration from flat hiring in the prior year. This report suggests that the labor market remains resilient despite earlier signs of softer growth. After such tepid job growth last year, this may be a signal that the “No fire, no hire” job environment may be changing.
Economists and markets will be watching jobs numbers closely because robust payroll gains and a lower jobless rate could temper expectations for aggressive Federal Reserve rate cuts (which would not make President Trump happy). Policymakers may feel less pressure to ease monetary policy if the labor market stays strong and inflation remains sticky. Because employers are still hiring, the Fed may opt to delay or slow the pace of rate reductions that many had priced in for this year, making future cuts less likely in the near term. Jobs report January 2026:
The Dow Hit 50,000: This week, the Dow Jones Industrial Average (DJIA) hit 50,000. Just eight years ago, it crossed 25,000, which means stocks have doubled in less than a decade. Yes, staying in the market through a tumultuous decade can reap big compounding benefits. It is a milestone to be recognized, but I was kind of glad the media didn’t make a big deal out of it. If stocks are going up approximately 10% a year, the DJIA should cross a new threshold every couple of years, which doesn’t seem that special or worth a mention. But what is special is the staying power and compounding of the stock market over a long period of time.
Financial Planning/Investment Strategy Corner:
Life Expectancy and Retirement Planning: Over the past five years, the COVID pandemic had a devastating effect on U.S. life expectancy. In addition to the direct loss of life from the virus, drug overdoses surged dramatically, reversing decades of steady improvement in longevity. According to recent reporting, those pandemic effects may finally be fading. The Centers for Disease Control and Prevention now reports that COVID is no longer among the top ten causes of death. At the same time, drug overdose deaths recorded their largest annual decline on record from 2023 to 2024.
As a result, life expectancy at birth in the United States rose to 79.0 years in 2024, an increase of 0.6 years from 2023 and the highest level ever recorded. For retirement planning purposes, the more relevant statistic is life expectancy at age 65, which increased to 84.7 years in 2024. For women, life expectancy at 65 rose to 85.8 years, up 0.1 year, while for men it increased to 83.4 years, up 0.2 years.
These improvements place a renewed spotlight on longevity planning. Living longer is welcome news, but it also means retirement assets may need to last longer than previously assumed. Some individuals may need to work a bit longer, reduce spending early in retirement, or consider part-time work to preserve assets. Delaying Social Security can also play an important role, as benefits increase each year up to age 70 and cost-of-living adjustments compound on a higher base benefit.
At RSWA, we generally project retirement plans until age 94 for women and 92 for men. Actuarial data suggests a 65-year-old has roughly a 30 percent chance of living to those ages. Planning only to average life expectancy would imply that about half of retirees could outlive their assets. Using a longer time horizon provides a prudent balance between realism and caution. Of course, each plan is tailored to the client’s personal health history and family longevity. Even so, the data suggests that the average retiree should prepare for a longer retirement than in the past. 401k Specialist - U.S. Life Expectancy Hits Record High, CDC Reports
Quick Hits:
- The last 5-10 years have been tough, but researchers have identified 536 A.D. as the worst year ever to be alive: Popular Mechanics
- New Hampshire lawmakers get paid like it’s 1889 – and they want a pay raise: WSJ
- Yes, we are staring at a lot of snow – but it’s time to think about and get ready for your spring garden: The Spruce: 8 Simple Ways to Get Your Garden Ready for Spring Planting
- Maine Restaurant Week is March 1 -12. Make your reservations now: Maine Restaurant Week
- A multitasker’s guide to regaining focus: NYT - Multitasking Is a Bad Habit. Here’s How to Stop
- Need some Valentine’s Day dinner ideas? Food Network - Best Valentine's Day Dinner Recipes
Heart Rate Variability – An Insight Into Health: Heart rate variability (HRV) is becoming popular to track with the advent of wearable fitness watches, many of which track the metric. HRV is the measure of the small fluctuations in the time between each heartbeat that occur naturally throughout the day. It’s counterintuitive, but having variation in the timing of heartbeats, rather than a perfectly regular rhythm, is generally a sign that your body is responding flexibly to changes in your environment and your internal state.
What HRV reflects is how well your autonomic nervous system, the part of your nervous system that works automatically to regulate functions like heart rate, breathing, and blood pressure, is balancing stress and recovery. A higher HRV generally suggests good cardiovascular fitness and resilience to stress, while a lower HRV can be associated with chronic stress, poor sleep, or increased risk for heart disease. The “normal” range for HRV is generally between 20 and 70, but no specific number is right because HRV is highly individual and influenced by age, genetics, fitness level, and lifestyle. Instead, trends over time are more informative than one-off readings and can help people understand how diet, exercise, sleep, and stress affect their overall heart health. Scientific American: Why a Little Heartbeat Irregularity Can Be Good for You
Harvard Health: How relevant is heart rate variability?
Quote: “Where there is love, there is life.” Mahatma Gandhi
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