It was the kind of jobs print that forces a double take: payroll growth tepid, the unemployment rate a touch lower, and the year as a whole the weakest for hiring in two decades. According to the latest figures from the Bureau of Labor Statistics, nonfarm payrolls rose by just 50,000 in December — far below many economists' expectations and the capstone to a year of subdued hiring.
A puzzling snapshot
The headline number — 50,000 — understates some of the mixed signals beneath the surface. The household survey showed an increase of 232,000 people employed, which helped push the unemployment rate down to 4.4% and the broader labor underutilization measure (U-6) to about 8.4%. At the same time, the labor force participation rate inched down to roughly 62.4%, suggesting fewer people were actively looking for work even as more households reported someone working.
Wage growth remained steady but not overheated: average hourly earnings rose 0.3% in December and 3.8% year over year. That keeps inflationary pressure from spiking via the labor market, even as pay gains remain meaningful for many workers.
Sector detail gives a clearer sense of where the openings are. Leisure and hospitality led December, adding nearly 47,000 jobs — restaurants and bars were the big drivers. Health care also contributed, with hospitals and related services boosting payrolls. On the flip side, retail shed about 25,000 positions and manufacturing recorded job losses for the eighth straight month.
Other important context came from revisions. November’s payrolls were nudged slightly lower and earlier months were also adjusted, leaving the 2025 average payroll gain at roughly 49,000 per month. That pace makes 2025 the weakest year for job creation outside recessionary episodes since 2003.
Demand for workers is cooling
The slowdown isn't limited to payroll tallies. The Job Openings and Labor Turnover Survey showed openings slipping to about 7.15 million at the end of November, the fewest in more than a year, while hires and separations also trended lower. Measures of hiring activity are approaching levels more typical of a cooling economy than a boom.
Surveys of sentiment match the data: the New York Fed's consumer expectations gauge found Americans felt less confident about their chances of finding work, with the perceived probability of getting a job at a record low in December.
What this means for markets and policy
Financial markets reacted with calm: futures ticked up and Treasury yields were largely stable after the release. Policymakers at the Federal Reserve will be parsing the nuances — modest payroll growth, slowing openings, steady but not runaway wages — as they decide how much room they have to ease monetary policy further. The Fed cut rates three times in the fall in response to weakening parts of the labor market; futures markets now price the next cut farther out than they did a month ago.
Economists are split on the interpretation. Some see the data as evidence that employers are choosing to be cautious — hiring slowly while retaining staff. Others point to the household survey gains as a sign that more people are finding work, even if firms are posting fewer openings.
For workers and businesses
For workers, the picture is mixed. Sectors that still hire — hospitality and health care — offer opportunities, but many Americans face thin job markets in retail and manufacturing. For businesses, the slackening in hiring and openings could ease wage pressures but also make it harder to find skilled labor in pockets of the economy.
The December report closes out a year in which hiring largely petered out after a brisk start: most of 2025's gains were concentrated in the first third of the year. As companies weigh investment decisions, trade policy uncertainty and the broader path of demand will determine whether 2026 brings a sustained pickup in hiring or merely more of the same slow, uneven growth.
The full set of statistics and tables are posted by the Bureau of Labor Statistics, and they will be dissected in the weeks ahead — not least by families trying to read what it means for job openings in their town and by policymakers deciding how quickly to change interest rates. Meanwhile, the economy has arrived in January with growth running, hiring subdued, and uncertainty high — a tricky combination for everyone watching paychecks and prices.