Jobs Report Shows US Labor Market Continues to Weaken

Introduction to the Job Market

The U.S. economy added 50,000 jobs in December, which is below expectations and fewer than the 56,000 jobs added in November. The unemployment rate fell to 4.4% from 4.5%, which is also below expectations. This report shows that the job market stayed in a low hiring, low firing limbo.

Key Takeaways

• The U.S. economy added 50,000 jobs in December, below expectations and fewer than the 56,000 in November.
• The unemployment rate fell to 4.4% from 4.5%, below expectations for 4.5%.
• Overall, the report showed the job market stayed in a low hiring, low firing limbo.

The Job Market in December

The job market improved by one measure but stayed relatively slow in December. U.S. employers added 50,000 jobs in December, and the unemployment rate edged down to 4.4% from a downwardly-revised 4.5% in November. The relatively slow job growth was slightly below the downwardly-revised 56,000 added in November and was less than the 73,000 jobs forecasters had expected.

Why This Matters

The lower-than-expected unemployment rate could ease the fears of officials on the Federal Reserve that the job market is in imminent danger of collapsing, and encourage them to hold rates steady in January. The slow job growth and elevated unemployment rate continued to show the effects of economic policies, especially tariffs, which have discouraged hiring, and the crackdown on immigration, which has reduced the number of available workers.

A Bad Year for Jobs, Especially Manufacturing

The manufacturing sector lost 8,000 jobs in December, the eighth month straight of job losses. The downturn is especially significant because tariffs, introduced eight months ago, were specifically intended to boost American manufacturing employment by protecting industry from overseas competition. As it stands, 2025 was one of the worst years for job growth in decades. The economy added just 584,000 jobs the entire year, the fewest since 2003, excluding the Great Recession and the COVID-19 recession.

Conclusion

In conclusion, the job market stayed in a low hiring, low firing limbo in December, with 50,000 jobs added and an unemployment rate of 4.4%. The slow job growth and elevated unemployment rate continued to show the effects of economic policies. The manufacturing sector was particularly affected, with eight consecutive months of job losses. The Federal Reserve will likely scrutinize this report when deciding whether to cut interest rates again in January. Overall, the job market is still waiting for clearer signs of renewed momentum.