Gross domestic product rose at an upwardly revised 3.4% annualized pace in the fourth quarter.
The nation's 32.5 million immigrant workers now account for roughly one in five US workers.
The report adds to evidence that inflation is proving stubborn.
The so-called core personal consumption expenditures price index increased 0.4% from December.
The core consumer price index increased 0.4% from December, more than expected and the most in eight months.
Job growth in January was led by healthcare, professional and business services, and retail trade.
The new data caps a year that saw inflation retreat at a much faster rate than the Fed anticipated.
A closely watched measure of underlying inflation rose 2% for a second straight quarter.
Private payrolls increased 164,000 last month, the most since August, a new report says.
Economists don't expect rate cuts until mid-2024, but the markets see the easing cycle starting sooner.