In December, hiring in the United States saw a significant slowdown, capping off the weakest year for job growth since the onset of the pandemic. According to a recent report from the Labor Department, only 50,000 jobs were added last month. In a slight positive development, the unemployment rate decreased from 4.5% in November to 4.4%. However, job gains in October and November were revised downwards by a total of 76,000 positions, reflecting a broader trend of stagnant job growth.
Throughout 2025, employers added a total of 584,000 jobs, a stark contrast to the 2 million jobs created in 2024. This decline makes 2025 the most challenging year for employment growth since 2020.
The health care and hospitality sectors showed some resilience, contributing to job creation in December, with health care proving to be relatively stable amid economic fluctuations. On the other hand, manufacturing faced a continued downturn, shedding 8,000 jobs in December. This industry has struggled for nearly ten months, largely due to ongoing supply chain issues and the impact of tariffs imposed during President Trump’s administration. An anonymous factory manager highlighted the low morale within the sector, attributing it to high living costs and rising expenses for components due to tariffs.
While the federal government managed to add 2,000 jobs over the month, it remains down by 277,000 jobs since the beginning of the year. Significant job losses were recorded previously when workers who accepted buyouts left the payroll.
Despite the unemployment rate being historically low, worker anxiety about job security has been growing. A survey conducted by the Federal Reserve Bank of New York revealed that many employees are increasingly concerned about potential layoffs and are feeling less confident in their ability to secure new jobs if necessary. This cautious sentiment has inhibited labor market mobility, leaving fewer job openings for younger job seekers and those entering the workforce.
In response to the sluggish job market, the Federal Reserve took action by cutting its benchmark interest rate in December for the third time since September, aiming to stimulate economic growth and improve job prospects. As we move forward, it remains to be seen how these measures will impact hiring trends in the coming months.