The US labor market showed modest job creation in December as employers added 50,000 positions to payrolls, according to data released by the Bureau of Labor Statistics. This figure fell short of economist expectations for approximately 73,000 new jobs and contributed to what became the weakest full year of employment growth since the pandemic. The previous two months’ figures were revised downward, with estimates now showing 76,000 fewer jobs added in October and November combined.
The unemployment rate declined to 4.4% in December after reaching a four-year high of 4.6% in November. Over the full course of 2025, US employers added 584,000 jobs according to official tallies, a marked deceleration from 2024 when 2 million positions were created. Economic analysts have characterized the current labor market as being in a “no hire, no fire” phase, with continued but subdued job growth and layoff levels declining in December compared to November.
The weak jobs data comes amid broader economic uncertainty and debate over policy direction. The Trump administration has emphasized economic growth and promised price reductions, citing third-quarter expansion last year, while noting that the labor market has weakened significantly. A controversy erupted when the president posted a chart regarding private sector job growth on social media Thursday evening, ahead of Friday’s official data release, prompting the White House to acknowledge an “inadvertent public disclosure” of pre-released economic information.
Federal Reserve officials are expected to evaluate the employment figures at their policy meeting later this month as they determine whether to adjust interest rates currently positioned in a range of 3.5% to 3.75%. Some Fed members have indicated a pause in rate cuts is probable. Treasury Secretary Scott Bessent has called for continued rate reductions to support stronger growth, while Fed Chair Jerome Powell has indicated officials will proceed cautiously, hoping the labor market stabilizes and inflation continues cooling from November’s 2.7% annual increase.
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