U.S. hiring slowed more than anticipated in December, closing out one of the weakest years of job growth in decades. The economy added an estimated 50,000 jobs last month, down from a downwardly revised 56,000 in November, according to new data from the Bureau of Labor Statistics.
Unemployment Rate Ticks Down
Despite slower hiring, the unemployment rate edged slightly lower to 4.4% in December, compared with a revised 4.5% the month before. Economists had forecast a gain of 55,000 jobs and an unemployment rate holding steady at 4.5%.
Weakest Job Growth Outside Recessions
With December’s figures, the U.S. added about 584,000 jobs in 2025. Outside of recession years, that marks the weakest annual job growth since 2003, BLS data shows. Economists say the slowdown reflects mounting uncertainty, including shifts in trade and immigration policy, persistent inflation, and high interest rates.
A Broad-Based Hiring Slowdown
Hiring cooled across most industries, a trend some economists have described as a “hiring recession.” Heather Long, chief economist at Navy Federal Credit Union, has noted that nearly every sector has been affected by the pullback.
Health Care and Hospitality Buck the Trend
The main exceptions in December were health care and leisure and hospitality. Leisure and hospitality added 47,000 jobs, while health care and social assistance grew by 38,500 positions, driven in part by an aging population and continued consumer spending in select areas.
Losses in Manufacturing and Retail
Job losses were concentrated in goods-producing industries, particularly manufacturing. Retail trade also shed jobs, as seasonal hiring was weaker than in past years, underscoring the uneven nature of the labor market slowdown.
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