The US labor market showed modest growth in December as employers added 50,000 jobs, according to data released by the Bureau of Labor Statistics. The figure fell slightly short of economist expectations of approximately 73,000 positions. The reading concluded what the statistics bureau characterized as the weakest year of employment growth since the pandemic, with employers adding 584,000 jobs throughout 2025.
The unemployment rate decreased to 4.4% in December, rebounding from a four-year high of 4.6% recorded in November. Previous estimates for October and November were revised downward, with the bureau now reporting 76,000 fewer jobs added during that two-month span. October had been particularly challenging, when the US economy shed 173,000 jobs during what was described as the longest US government shutdown in history.
Economists characterized the labor market as operating in a “no hire, no fire” phase, with job growth continuing but remaining subdued. Data from the outplacement firm Challenger, Gray & Christmas indicated that layoffs in December were nearly half the level observed in November. Federal Reserve officials are scheduled to assess this employment data at their policy meeting at the end of January, where they will determine whether to reduce interest rates, currently set at a range of 3.5% to 3.75%, or maintain the current level. Fed chair Jerome Powell indicated officials would proceed cautiously while remaining optimistic about labor market stabilization and inflation cooling.
The White House faced scrutiny after the president published data on social media Thursday evening that appeared to reference the jobs report released the following morning, prompting questions about protocol adherence. The White House acknowledged “an inadvertent public disclosure of aggregate data that was partially derived from pre-released information” and said it was reviewing economic data release protocols. Economists suggested the weak payroll data could support the possibility of interest rate reductions as early as March, though Fed officials have signaled a pause in rate cuts is more likely.
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