BREAKING: The Supreme Court issued its long-awaited ruling on tariffs as we were preparing to send this week's MoneyNerd. The upshot: Trump’s reciprocal tariffs have been struck down, injecting fresh uncertainty for consumers. Get all the details here.
Welcome to MoneyNerd! Jobs and inflation reports for January look good on the surface. We dug into the details on both. Read on:
The job market (one sector is keeping it afloat).
Inflation (it’s easing — or is it?).
Also this week:
Retirement (working Americans are struggling to save).
Heads up, baseball fans (MLB TV throws a curveball).
Are index funds still diversified? (On our Smart Money podcast.)
Money tips (and more!)
Health care is carrying the labor market right now
Health care is doing the heavy lifting in U.S. job growth. Federal labor data show that without it, overall employment gains would be barely noticeable, as most other sectors are stagnant or declining.
Since 2022, growth in education and health services has been greater year-over-year than any other major sector. From 2024 through 2025, hiring increased by 2.86%, compared to the only other sectors with positive growth: utilities (1.54%), leisure and hospitality (0.89%) and construction (0.53%).
The latest jobs data for January shows that total nonfarm payroll employment rose by 130,000. Health care alone accounted for nearly two-thirds (63%) of that total. Combined with social assistance, these sectors drove 95% of all job growth.
This trend reflects a broader pattern: In 2025, health care added an average of 33,000 jobs per month, outpacing nearly every other sector. Over the past four years, health care has also seen the most jobs added.
(Note: The chart below depicts “supersectors,” which means it groups health care and social assistance with education services.)
Professional and business services — including legal, accounting, advertising, and administrative support — added a similar total number of jobs over the same four-year period. But December 2025 Job Openings and Labor Turnover Survey (JOLTS) data show high layoffs and discharges in the professional and business services sector, compared with health care, which saw few layoffs.
Health care hiring shows no signs of stopping, but if other job sectors struggle to add jobs or layoffs rise, even strong health care growth may not be enough to keep the labor market from stumbling.
Inflation is finally easing. Or is it?
Last week’s release of the January consumer price index (CPI) from the Bureau of Labor Statistics signaled some encouraging news in the long battle against inflation, as prices overall were up just 0.2% since December and 2.4% since last January.
That’s not quite down to the 2.0% annual inflation rate the Fed aims for, but it’s a move in the right direction — down from 3.0% as recently as September and from 9.0% at the height of pandemic-fueled inflation in June 2022.
Does that mean the battle is won? The White House thinks so. “We’ve brought costs way down, and the numbers were surprising — except to me, they weren’t surprising,” President Donald Trump said on the day of the release.
Trump is working to change perceptions that he has fallen short on campaign promises to fight inflation “starting on day one.” The most recent Reuters/Ipsos poll numbers for his handling of the economy show 34% approve and 57% disapprove.
January CPI: Under the hood
The latest CPI report indicates that some categories have actually become cheaper in the past year, including two that were highly visible in the 2024 presidential campaign.
Egg prices soared during 2024 and early 2025 due to a massive outbreak of avian flu. Farmers have since rebuilt their flocks — and retail prices are down 34.2% year over year.
Gas prices are down at the pump as well, amid slowing global demand and increasing supply. Regular gasoline is down 8.0% year over year, according to the BLS.
Some other everyday prices have risen sharply, including ground beef (up 17.2% annually) and coffee (up 18.3%). Prices for electricity and piped gas are also rising much faster than the overall inflation rate.
Core CPI, which removes more volatile food and energy prices, rose at a slightly more stubborn annual rate of 2.5% in January.
What’s next for prices?
Trump’s global tariffs continue to play a role in U.S. prices. Several studies, including one from the New York Fed, found that nearly all the cost burden of tariffs is passed on to U.S. businesses and consumers. The Congressional Budget Office estimates that U.S. businesses absorb 30% of the cost increases and pass the remaining 70% on to consumers.
Early effects of the tariffs were muted because importers stockpiled inventory before Trump’s new tariffs began in April 2025. Retailers and manufacturers also held prices relatively steady for competitive reasons during the holiday season, but that is starting to shift. The Wall Street Journal reported this week that companies are starting to raise prices “on items from bluejeans and spices to housewares and industrial products.”
And this morning came the news that the Supreme Court has ruled that many of Trump’s tariffs are unconstitutional. Effects of the major ruling will take time to settle.
The bottom line: Inflation may not be slayed yet, and the CBO estimates that inflation may not settle down to the Fed’s 2.0% target until 2030. CPI data for February will be released March 11.
What money worries keep you up at night?
Wondering how the latest economic headlines affect your household? Just plain stressed out about your finances? The Nerds are here to help.
If you’ve got a burning money question you can’t stop thinking about, we want to hear it.
Send your questions to [email protected],and tell us what’s on your mind. We may answer your question in an upcoming newsletter.
Median retirement savings for U.S. workers: just $955
Working Americans are struggling to save, a new report finds. Across all U.S. workers ages 21 to 64, the median amount saved for retirement was just $955, according to data from the National Institute on Retirement Security (NIRS).
Savings were low across age groups. Using retirement targets set by Fidelity — based on saving multiples of income by certain ages — younger workers (age 21 to 34) hit a median of only 4% of the savings target and older workers (age 55 to 64) hit only 6%.
“It’s not that they’re not saving anything,” says Tyler Bond, NIRS research director and one of the study’s authors. “But the question is, are they saving enough that they’re going to be able to maintain their same standard of living in retirement?”
For Americans who have at least $1 in a defined contribution retirement plan, such as a 401(k) plan, median retirement savings were $40,000.
“The entire universe includes a lot of people who don’t have access to a retirement plan at work,” Bond says. “We know people are overwhelmingly more likely to save if they have access to a plan.”
Join the NerdWallet Book Club: Join us as we read "My Mother's Money: A Guide to Financial Caregiving," by the financial journalist and certified financial planner Beth Pinsker. We interviewed the author — and we're giving away a copy of her book. To enter for a chance to win our book giveaway, send an email to [email protected] with the subject: “Book Giveaway” during the giveaway period. Entries must be received by 11:59 p.m. PST on Feb. 28. No purchase necessary. Learn more details here.
Does ESPN strike out with its new MLB TV subscription process?
New for the 2026 season, ESPN is the exclusive distributor of MLB.TV — an extra streaming package you can buy to watch loads of out-of-market Major League Baseball games. MLB TV costs $149.99 for the season or $29.99 per month and, for new customers, it’s kind of complicated.
What’s new (and kind of annoying): Technically, you now need an ESPN Unlimited streaming subscription to buy MLB TV.
What helps the cause: You can get one month of ESPN Unlimited for free if you’re new. Existing ESPN Unlimited subscribers get a $15 discount on MLB TV.
What makes it annoying, still: ESPN Unlimited is a standalone service that costs around $30 per month. You’ll need to cancel it to avoid auto-renewal at that rate after the free trial. Your MLB TV subscription will remain.
I don't care about baseball enough to pay for this plan, but I tried to sign up anyway. And it was more painful than a hit-by-pitch.
I first selected the MLB TV seasonal plan from ESPN’s signup page and added my email address.
Then, I was prompted to log in with my MyDisney account, which I already have because of Disney+.
After logging in, I was reminded ESPN Unlimited is required to purchase MLB TV.
I then moved through my plan options and halted at the page showing I’d owe $18.94 today to add ESPN Unlimited to my existing Disney+ bundle.
I never made it to any purchase page for MLB TV. I left frustrated and longing for my childhood, when all I had to do was flip to channel 10 to find a game most nights of the week.
I’m out.
Nerdy money tips
Use a book club to learn about money. Book clubs can make it easier to talk about your finances. Personal finance writer Kimberly Palmer explains how to find a club — or start one yourself.
Make a stop in the clearance aisle. Personal finance writer Tommy Tindall explains why Valentine’s Day candy is one of the best deals in the month of February.
Try out a cash-back app. Cash-back apps give you a rebate on a purchase, or provide a coupon for an additional discount. The Nerds explain how they work and what to consider before you download one.
Smart Money: Are index funds still diversified?
Senior news writer Anna Helhoski and Ryan Sterling, a wealth advisor with NerdWallet Wealth Partners, break down stock market concentration risk and what it means for index fund diversification.
Watch below or get the audio version.
In case you missed it
Here’s a look at what the Nerds covered this week:
The size of your debt load can determine the best way to pay it off. Writers Lauren Schwahn and Jackie Veling laid out the top debt payoff strategies for 2026.
Speaking of debt, should you use your tax refund to pay off debt? Confirm your refund first, then decide whether to use it for essentials, savings, high-interest debt or something fun. Here’s what else you should know.
Egg prices are down 34.2% from a year ago — and are almost 59% below their record peak in March 2025. The Nerds explained why egg prices continue to fall.
Have your New Year’s resolutions made it to mid-February? If it’s time to set new money goals, the Nerds created a step-by-step guide for identifying financial priorities.
Mortgages Nerd Abby Badach Doyle helped prospective buyers understand if now is a good time to buy a house.
Elsewhere in money news:
Wendy’s is closing hundreds of restaurants across the country. (Axios)
Japan pledged to invest approximately $36 billion in oil, gas and critical mineral projects in the United States. (CNBC)
Worried about AI taking your job? Job seekers can actually use AI to their advantage when searching for a new position. (Bloomberg) 🔒
While the overall U.S. trade deficit widened in 2025, the trade deficit on goods was the highest on record. (New York Times)🔒
Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.
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Until next week,
