US labor market grows by 50,000 positions in December, concluding a sluggish 2025

US Job Market Sees Modest Growth in December

In December, the United States saw an increase of 50,000 jobs, according to figures released by the Labor Department on Friday. This comes at a time when concerns are mounting over a slowing employment landscape, with many job seekers finding it increasingly difficult to secure new positions.

The unemployment rate edged down to 4.4% from November’s 4.5%. Economists surveyed by Bloomberg had anticipated a higher job gain of 70,000 and expected the unemployment rate to remain at 4.5% for the final employment report of 2025.

Updated statistics for November revealed that job growth was actually 56,000, down from the previously reported 64,000. October’s numbers were also revised, showing a loss of 173,000 jobs, which is significantly higher than the earlier estimate of a 105,000 decline.

Jed Kolko, a senior fellow at the Peterson Institute for International Economics, noted on X that the average monthly payroll increase for the year, including December, was 49,000 jobs.

“This represents the slowest annual job growth outside of recession periods,” Kolko commented. He attributed the sluggish pace to immigration policies that have limited workforce expansion, thereby restraining job creation.

Heather Long, chief economist at Navy Federal Credit Union, also pointed out on X that without gains in healthcare and social assistance, 2025 would have experienced an overall loss in employment.

Lingering Uncertainty in the Labor Market

Debate continues over the health of the US job market, as both experts and workers contend with slow hiring and minimal job creation. However, layoffs have remained relatively low, leading some to describe the current climate as a “no-hire, no-fire” scenario. Many Americans are feeling the strain: according to a New York Fed survey, the perceived likelihood of finding a new job within three months after losing one dropped to its lowest point on record in December.

Additionally, the proportion of unemployed individuals who have been out of work for 27 weeks or more reached 26% in December, marking the highest level since early 2022.

It’s also important to note that the monthly employment report is only now returning to a regular schedule after delays caused by last fall’s government shutdown.

Signs of Stability Amid Ongoing Challenges

Recent private sector data has provided some cautious optimism for those watching the labor market closely. December saw the lowest number of layoff announcements since July 2024, according to the global outplacement firm Challenger, Gray & Christmas. Meanwhile, ADP’s private payroll report indicated an increase of 41,000 jobs for the month.

The Bank of America Institute also reported this week that its internal data suggests year-over-year payroll growth rebounded in December, possibly indicating that the worst of the slowdown may be over.

Jobless claims last week rose by a smaller margin than economists had predicted, offering another glimmer of hope for the employment outlook.

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