In December 2025, employers throughout the United States added an unexpected 50,000 jobs. That was a big step down in the pace of job creation as the year wrapped up. This lackluster figure has become even worse, as it now represents the weakest monthly job growth since the beginning of the COVID-19 pandemic back in 2020. Recent U.S. unemployment rate fell to 4.4% and provided just a sliver of good news. While this is a lukewarm jump, it beats what has been a dismal performance in the employment market for the year.
The trend in 2025 was for fewer job gains—just an average of 49,000 per month. This was a big drop from the two million jobs per month we estimate would be added in 2024. Today’s report from the Labor Department makes clear that America’s job market is still extremely weak. December marked a month of disappointing job creation. Employers seem to have taken a wait-and-see approach to hiring, in line with general economic jitters.
2025 has been a year filled with anxieties over expected mass layoffs, but those fears have not come to pass… at least not yet. Even with hiring slowing down across the economy, an overwhelming majority of companies have been able to keep their employees. The modest job growth coupled with a declining unemployment rate suggests a complex labor market landscape where some stability exists amidst slower employment expansion.
Further, US President Donald Trump’s policy changes have played a role, resulting in some unusual and unexpected dynamics in the job market. Combined with a massive spike in tariffs on imports, this double whammy has crushed countless businesses. Perhaps even more profoundly, an aggressive immigration crackdown and austerity measures have altered hiring practices. Taken together, these policy decisions have given the administration a role in fostering an environment where companies feel more reticent to pursue aggressive workforce expansion.
The Labor Department’s release of December’s job market data underscores the challenges faced by employers in navigating these policy shifts. Hiring trends have cooled markedly over the past year, leading many analysts to question the sustainability of current job growth levels.