Today’s disappointing data shows this trend continuing. Employers added only 50,000 jobs in December 2025, representing a dramatic slowdown in the pace of job creation across the United States. Unemployment rate fell to 4.4%. The net new jobs added this year were the weakest since before the COVID-19 pandemic started in 2020. The Department of Labor’s most recent Jobs Report revealed that the monthly job creation average for 2025 was just 49,000 jobs per month. This is a steep drop from the two million jobs that were added per month one year ago.
To put it mildly, December’s meager advance surprised the hell out of economists. Together with persistently high claims, this trend reflects a labor market that has been cooling all year. While job growth is slower than expected, the feared wave of mass layoffs has failed to materialize. This points to widespread employer commitment to retaining workers amid a still uncertain economic climate. A variety of other policy changes from US President Donald Trump have created this environment. Some of these changes come from protective tariffs, an immigration crackdown, and cuts to government spending.
Hiring trends in 2025 have changed dramatically from 2024. Job creation has fallen off a cliff. Analysts cite an unusual confluence of domestic policies and global economic factors as key drivers of this marked slowdown in economic activity. As private sector companies continue to steer through this uncertainty, they appear to be taking a wait-and-see approach in their hiring plans.
The employment market has been under pressure all year. The recent slowdown in job gains has led some to worry about the underlying health of the economy. The unemployment rate has fallen modestly. This trend is hard to imagine continuing indefinitely without much greater overall job creation.
Beyond the political scene, a perfect storm of other factors have converged to create today’s stark employment reality. Changes in trade policy and immigration law have produced unintended consequences for many sectors. Indeed, in a variety of ways, today’s hiring practices hang in the balance. Employers seem to be recalibrating their workforce requirements given their transition to these realities.