> At a Glance
> – Employers added only 50,000 positions in December, matching November’s downward-revised pace
> – Unemployment dipped to 4.4%-its first drop since June-after November was restated lower
> – Why it matters: With 2025 averaging a meager 22,000 jobs a month since August, workers face the tightest market in years even as layoffs stay low
2025 ended with a whimper in the labor market, as December’s modest 50,000 payroll gain sealed the weakest annual hiring stretch since 2021.
The December Numbers
The Labor Department’s Friday release showed hiring nearly flatlined for a second straight month. November’s count was trimmed to 56,000, leaving the two-month average below population growth.
The jobless rate edged down only because prior months were revised lower, not because more people found work.
What’s Holding Employers Back
Businesses cite a trio of headwinds:
- Post-pandemic staffing catch-up is over; many firms say they’re “right-sized”
- Ongoing policy uncertainty tied to shifting tariff timelines
- Rapid AI adoption that could replace rather than create roles
A Closer Look at 2025’s Trajectory
| Period | Average Monthly Job Gain |
|---|---|
| Jan-Mar 2025 | 111,000 |
| Jun-Aug 2025 | 11,000 |
| Sep-Nov 2025 | 22,000 |
Annual benchmark revisions due in February may erase another 911,000 positions from the March 2025 total, and Fed Chair Jerome Powell says current reports could still overstate gains by roughly 60,000 a month.
Key Takeaways
- Slack hiring persists despite GDP climbing 4.3% last summer
- The Fed has already cut rates three times, but futures signal a pause
- November’s shutdown distorts comparisons; December is the first “clean” reading in three months
Whether 2026 rebounds may hinge on tax refunds from last year’s legislation and how quickly firms weave automation into workflows.
