As new data came in, movements prompted by modest growth in the U.S. job market were muted. Employers increased payrolls by just 50,000 jobs in that last month of the year. Yet even this disappointing number was a surprise, emphasizing the deep deceleration of job growth that has defined this year. The Labor Department just put out new data showing that the average monthly net new jobs added in 2025 was just 49,000. That’s a drastic drop off from an anticipated increase of two million jobs a month in 2024.
All of this is not to minimize the positive, including the unemployment rate which ticked down to 4.4%. And for 2025, the job gains were abysmal. This was the lowest growth since the Covid pandemic forced millions of workers out of jobs in 2020. The current labor landscape suggests that U.S. hiring has cooled markedly over the past year, raising concerns about the sustainability of the job market.
Key factors behind this slowdown are a combination of policies enacted under the administration of former president Donald Trump. Tariffs were raised, borders were closed to immigrants, and the federal government cut spending. These abrupt, deep changes have made for a confluence that has hit all businesses particularly hard. Whether it’s fears of mass layoffs or whether these have yet materialized. Consequently, there are entire industries that are still able to thrive in a safe haven.
The Labor Department’s report suggests a decidedly bifurcated job market over the course of 2025. Although every industry experienced severe headwinds that stunted recruitment, many were still able to adapt to the turbulent hiring environment and come out on top. The tepid pace of job creation—combined with signs of slowing consumer demand—points to a notable employer pullback on hiring. They’re afraid to build their workforces with the changing economic policy tides and global uncertainty.