Things are looking up for the labor market...

It’s (almost) Friday, Friday…the day when you gotta get down, according to Rebecca Black, who released the infamously memed anthem “Friday” 15 years ago this week. Though early responses to the then-13-year-old’s music video were less than kind, it turned into a phenomenon that ultimately racked up more than 178 million views and lodged her firmly in the cultural zeitgeist. More recently, the singer has mounted a comeback as a pop performer and DJ. Rebecca, we hope you get your bowl and cereal today.

—Dave Lozo, Molly Liebergall, Sam Klebanov, Holly Van Leuven, Abby Rubenstein

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  • Stocks took their inspiration from pancakes and stayed mostly flat yesterday, as investors digested a jobs report that showed things picking up—meaning the Fed is unlikely to see a need for interest rate cuts (more on that below). One group that fell was real estate services stocks like CBRE Group and Cushman & Wakefield, which had their turn in the will-AI-upend-this-industry hot seat.
 

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ECONOMY

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Despite low expectations spurred by words of warning from a White House official, the US added a surprisingly high 130,000 jobs last month and saw the unemployment rate come in at a better-than-expected 4.3%, according to the highly anticipated jobs report released yesterday by the Bureau of Labor Statistics.

On Tuesday, senior White House trade advisor Peter Navarro adopted what now looks like an “underpromise and overdeliver” strategy. He asked the public to lower expectations because of mass deportations of non-citizens working illegally, saying future numbers that don’t reach six figures shouldn’t cause panic.

Instead, the news was upbeat, making it more likely that the Fed will continue to hold interest rates steady, at least until Jerome Powell’s term as Fed chair ends in May, without worrying that it will harm the labor market.

It’s not just the health sector this time

January came in as the strongest month in employment gains since December 2024, fueled by the healthcare and social assistance sector. Healthcare added 82,000 jobs, the most in a month since 2020. And while that industry was the lone bright spot through most of 2025, it had more support last month:

  • Construction gained 33,000 jobs.
  • Professional and business services gained 34,000.
  • Manufacturing posted 5,000 more jobs—the sector’s first monthly gain in more than a year.

Other encouraging data: The number of people working part-time for economic reasons fell by 453,000. Plus, more people left their jobs, a sign that they believe there’s more work to be found.

Looking back: The BLS adjusted job numbers downward for the past two years. For 2024, the US added 1.5 million jobs, down from the previously estimated 2 million; in 2025, the market slowed to 181,000 job additions versus the estimated 584,000.

Big picture: While those revisions paint an even bleaker picture of past years, it also amplifies the turnaround to start 2026.—DL

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WORLD

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Kraft Heinz pauses breakup plans. Much like Ben Stiller and Christine Taylor rekindling their flame during Covid lockdown, Kraft Heinz has scrapped plans to split up. In September, the company announced plans for the split, which would have effectively undone the megamerger that created the food leviathan. But its current CEO, who took over in January, now believes that many of the company’s challenges are “fixable and within our control.” So, the company will halt work on the separation and instead plan to invest $600 million to spur profitability.

AG Pam Bondi clashed with lawmakers in a five-hour hearing. During the lengthy House Judiciary Committee hearing things were often as tense as getting seated next to your ex at a Valentine’s Day dinner, as lawmakers grilled the attorney general about the Department of Justice’s handling of its files related to the late sex offender Jeffrey Epstein. Both lawmakers and Bondi were on the attack, with a Democrat kicking things off by asking Bondi to apologize to survivors in the room for her department’s actions, which she did not, and Bondi touting President Trump’s accomplishments, including the performance of the stock market. Republican Rep. Thomas Massie, who sponsored the bill requiring the files’ release, also verbally sparred with Bondi.

Actor James Van Der Beek dies at 48. Van Der Beek, best known for his starring role on Dawson’s Creek and the crying meme it inspired, died yesterday. He was diagnosed with colorectal cancer in 2023, which he made public in 2024. After getting his big break as the titular character and stand-in for the teen drama’s creator in 1997, the Connecticut-born actor continued to find roles in movies and television, including Varsity Blues and Don’t Trust the B— in Apartment 23. He also became a father of six. His family said on Instagram that he died “peacefully.”—AR

TECH

Illustration of forward-facing camera lens with an orange background

Nick Iluzada

This week, Google Nest and Amazon-owned Ring stoked concerns about the line between good neighbor and Big Brother when it comes to doorbell cameras.

On Tuesday, the FBI released Nest footage of a masked person on Nancy Guthrie’s stoop on the night of her abduction. The clip could be a major case development, but it also prompted questions about how authorities extracted it—mainly because the local sheriff said Guthrie’s doorbell camera was disconnected as part of the crime and she didn’t have a subscription for cloud video storage:

  • FBI Director Kash Patel said officials worked with “private sector partners” to retrieve footage from “backend systems.”
  • Google hasn’t commented, but its privacy policy mentions that some Nest models can capture video when offline, the Associated Press noted.

Days earlier, Ring’s Super Bowl commercial promoted a new AI feature that can scrub a neighborhood’s footage to find a lost dog using a pet’s photo, which many viewers decried as a guise for state surveillance. The dog-finding feature can’t currently detect “human biometrics,” a Ring spokesperson told The Verge, but another new Ring feature called Familiar Faces can. The company’s CEO recently said that neighborhood cameras could help “zero out crime” within a year.

Still…Ring’s puppy play was the second-most-liked Super Bowl ad, according to iSpot surveys.—ML

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INTERNATIONAL

Switzerland

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Unlike your college apartment, Switzerland might limit the number of people allowed to live there. Yesterday, the Swiss government scheduled a June referendum on whether the home of Toblerone should cap its population at 10 million.

Promoted by a popular right-wing party, the ballot measure—which could limit immigration not just of refugees but also skilled workers—is meant to address the effects of mass migration like ballooning housing costs, overcrowded transit, and changing culture.

At capacity, no cap

Switzerland’s vibrant economy and Alpine paradise image made it into an immigrant magnet: Its population grew 10%, to 9.1 million, in the past decade—five times faster than that of the EU.

If the demographic ceiling passes, authorities would restrict newcomers:

  • Once the population reaches 9.5 million—projected for 2035—the government would have to suspend immigration for family members of foreign residents and limit asylum.
  • At 10 million, Switzerland would start withdrawing from international treaties that make its borders more porous than its cheese, like its free movement accord with the EU, which allows Europeans to live and work there.

Critics say this could threaten trade with the EU, the destination of over 40% of Swiss exports. Meanwhile, business leaders are worried about a skilled worker shortage and reduced pension contributions.

It might happen…according to a November poll, 48% of voters support the measure, 11% are undecided, and 41% oppose it.—SK

STAT

An El Paso Airport sign

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In the wee hours of yesterday, the FAA announced that it’d be halting all flights within 10 nautical miles of the El Paso, TX, airport for 10 days—only to change course hours later and say the airspace had been reopened. Even the brief grounding caused delays and left some travelers stranded, with the closest major American airport being in Albuquerque, NM, a 270+ mile trek away.

And before you start talking aliens and having flashbacks to unexplained drones above New Jersey, we’ve got a little more information about what happened this time—though government explanations have conflicted. The Pentagon and Transportation Secretary Sean Duffy said Mexican cartel drones had breached the airspace and subsequently been neutralized, while anonymous officials told news outlets the closure was due to a miscommunication over the Pentagon wanting to test an anti-drone laser in the area.—AR

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NEWS

  • McDonald’s said its value campaign is paying off, with revenue beating expectations and same-store sales rising 5.7% last quarter.
  • Bill Ackman revealed a $2 billion investment in Meta, a bet on the Facebook parent’s place in the AI race.
  • The House passed a resolution to overturn President Trump’s tariffs on Canada, with six Republicans joining all but one Democrat in a 219–211 vote. The resolution is largely symbolic, however, as it lacks enough Republican support to override a likely presidential veto if it clears the Senate.
  • The SAVE America Act, which would set new voter ID requirements for all 50 states, also passed in the House yesterday. This time, all Republicans voted for it, and all but one Democrat voted against it. It faces an uncertain future in the Senate.
  • Two co-founders left Elon Musk’s xAI this week, and Musk suggested they were a bad fit for the company, which he recently combined with SpaceX.
  • Britney Spears sold the rights to her entire music catalog.

RECS

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Three Headlines and a Lie

Three of these headlines about the Olympics are real and one is faker than your friend who claims they’ve always been super into curling. Can you spot the odd one out?

  1. Team USA’s newest Olympic star is a personal-injury attorney in his 50s
  2. Why the Minions performance is a cautionary tale for the Olympics
  3. Carb loading leads to pasta shortage in Olympic Village
  4. ‘My needles are waiting’: USA’s Ben Ogden credits knitting habit after cross-country silver

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ANSWER

We made up the one about pasta.

Word of the Day

Today’s Word of the Day is: leviathan, meaning “something large or formidable.” Thanks to Graham from Buckinghamshire in the UK for a whale of a suggestion. Submit another Word of the Day here.

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