U.S. job creation experienced only modest growth in December, capping off a year of relative weakness for the employment market in the world’s largest economy.
According to Labor Department data, employers added 50,000 jobs in the final month of 2025, a figure that fell short of expectations. However, the unemployment rate edged down to 4.4%.
Last year’s job gains were the smallest observed since 2020, when the Covid-19 pandemic triggered widespread workforce reductions.
Businesses have been operating amidst significant policy shifts implemented by U.S. President Donald Trump, including tariffs, stricter immigration enforcement, and reductions in government expenditure.
Despite these changes, the U.S. economy has demonstrated resilience, growing at an annual rate of 4.3% in the three months leading up to September.
However, this expansion, fueled by consistent consumer spending and increased exports, has not translated into substantial job creation.
On average, the U.S. added just 49,000 jobs per month in 2025, a decline from the estimated monthly gain of 168,000 the previous year.
The Labor Department also revised its estimates, indicating that 76,000 fewer new positions were created in October and November than initially reported.
Retailers and manufacturers reported losses last month, which were offset by hiring increases in the health care sector, as well as at bars and restaurants.
The data highlights the complex dynamics facing job seekers in the U.S., where hiring has slowed considerably over the past year, but widespread layoffs have not materialized.
In response to the economic slowdown, the U.S. Federal Reserve has lowered its key lending rate in an effort to stimulate the economy.
Starting in September, the central bank reduced interest rates three times last year, despite ongoing concerns about inflation. The key lending rate is currently hovering around 3.6%, the lowest level in three years.
However, policymakers remain divided on the extent to which borrowing costs should be lowered.
Analysts suggest that the latest figures are unlikely to resolve these debates. The unemployment rate, which rose to 4.5% in November, decreased last month to 4.4%, matching the rate observed in September.
“Today’s report confirms what we think has been evident for some time—the labour market is no longer working in favour of job seekers,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
She added, “Until the data provide a clearer direction, a divided Fed is likely to stay that way. Lower rates are likely coming this year, but the markets may have to be patient.”
The monthly jobs report is one of the most closely monitored economic indicators released by the U.S. government.
Its publication has historically been strictly controlled due to concerns that early access to the information could be exploited for financial gain.
This sensitivity is partly why a social media post by Trump on Thursday, incorporating some of the then-unpublished data, garnered almost as much attention as the report itself.
Almost 300 jobs are to be scrapped at Consumer Energy Services (CES) in Swansea and Treorchy.
Car crash victim Nick Atherton says he lost some of his inhibitions since suffering the injury.
January is a natural time to reflect on your career. If you’re looking for a new job, here are four ways to help.
Some apprenticeship subjects are not fully funded while A-levels are, says the review.
Young people living near West Yorkshire’s Production Park are urged to consider careers on their doorstep.