The United States job market experiences its most severe collapse in history. Job gains sunk to their lowest levels since the onset of the COVID-19 pandemic. Picture this—the Labor Department just put out data demonstrating that the US economy added just 50,000 jobs in December of 2025. That led Ohio to a disappointing net growth of only 49,000 jobs per month for the entire year. This figure, then, is well short of the two million jobs that will be added each month in 2024. It illustrates the deep divide in what’s happening with job creation.
The US unemployment rate is currently at an all-time low of 4.4%. This drop happens at a time when overall job creation is still going through a slow rebound. Even with this dip in unemployment, the overall labor hiring landscape grew significantly colder during the past year. February’s job creation numbers were a bust according to economists’ expectations. This disparity has led to increased worries that the employment market is losing its sustainability.
The US economy added 223,000 jobs in December, continuing a strong but moderating pace of job growth. This was a notable 180 from unprecedentedly high employment numbers just a year prior. Under the surface, the hiring landscape was uneven, with many sectors still facing challenges even as job creation overall fell sharply. The impending doom of mass layoffs across a multitude of industries never materialized. This was deeply welcomed as a relief from both the worker’s and employer’s side.
Policy changes made by President Donald Trump’s administration were equally responsible for steering the job market in 2020. Policy alterations, including the introduction of tariffs, an immigration crackdown, and cuts to government spending, have influenced hiring practices across various sectors. Together, these measures cooled job gains substantially. Furthermore, they’ve likely done the opposite and held back economic growth, which helps to explain the tepid job creation numbers they’ve posted for 2025.
As the year went on, it was clear to see that America’s labor market was facing a crumbling demand crisis. Job creation in 2025 was just under the amazing pace of the previous year. This unfortunate trend makes clear that there is need for targeted, adaptive strategies to increase hiring and jumpstart economic activity. As uncertainty settled over future economic conditions, employers started to rein in the purse strings.