The US labor market ended 2025 on a slow note, with employers adding just 50,000 jobs in December, the Labor Department reported Friday. The gain was slightly below November’s revised figure of 56,000 and far short of analysts’ expectations, marking a year of weak employment growth despite steady economic expansion.
Unemployment edges down
The jobless rate fell to 4.4% in December from 4.5% in November, its first decline since June. Economists viewed the drop as a positive signal, suggesting that the labor market is not as weak as the low hiring figures imply.
Sector trends
Nearly all December job gains were concentrated in health care and the hospitality sector. Health care added 38,500 jobs, while restaurants and hotels gained 47,000. Government employment, mostly at state and local levels, added 13,000 positions.
In contrast, manufacturing, construction, and retail shed jobs. Retail lost 25,000 positions, signaling weaker holiday hiring than in past years.
Year-long slowdown
2025 saw a total of just 584,000 jobs added, down sharply from the more than 2 million added in 2024 and the smallest annual gain since the COVID-19 pandemic. Hiring slowed dramatically after President Trump imposed sweeping tariffs in April.
The economy added an average of 111,000 jobs per month in the first quarter, then slowed to just 11,000 in the three months ending August before rebounding slightly to 22,000 in November.
Factors weighing on hiring
Analysts said businesses have slowed hiring for multiple reasons:
-Post-pandemic hiring surges have left many positions filled
-Uncertainty over tariffs and economic policies
-Elevated inflation and concerns about costs
-Automation and artificial intelligence potentially replacing some jobs
