U.S. Job Growth Slows in December; Unemployment Rate Declines to 4.4%

In December 2025, U.S. employers added 50,000 jobs, concluding the weakest year for job growth since the pandemic's onset. The unemployment rate decreased to 4.4% from November's 4.5%, according to the Labor Department's report released Friday. Revisions for October and November reduced job gains by a total of 76,000 positions.

Throughout 2025, the economy added 584,000 jobs, a significant decline from the 2 million jobs added in 2024. This slowdown reflects a cautious hiring environment amid economic uncertainties. Health care and hospitality sectors saw job increases in December, while manufacturing continued to decline, losing 8,000 jobs. The manufacturing sector has been in a slump for the last 10 months, according to an index of manufacturing activity compiled by the Institute for Supply Management. The sector has been hit hard by President Trump's tariffs, since many domestic manufacturers rely on some foreign components. A factory manager quoted in the ISM report noted, "Morale is very low across manufacturing in general. The cost of living is very high, and component costs are increasing with folks citing tariffs and other price increases."

The federal government added 2,000 jobs in December but remains down 277,000 jobs from the beginning of the year. Earlier in the fall, significant job losses occurred when workers who accepted buyouts officially left the government's payroll. Despite historically low unemployment rates, workers are increasingly concerned about job security. A survey by the Federal Reserve Bank of New York indicated a slight increase in workers' worries about job loss and decreased confidence in finding new employment if laid off. The slowdown in hiring has made current employees hesitant to leave their positions, resulting in fewer opportunities for job seekers entering the market.