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U.S. Adds 50,000 Jobs in December as Unemployment Slips to 4.4%

The report bolsters expectations that the Federal Reserve will pause further rate cuts this month.

Overview

  • Revisions lowered October to a loss of 173,000 jobs and November to a 56,000 gain, leaving those two months 76,000 weaker than first reported.
  • Total payroll growth in 2025 reached 584,000, far below 2024’s roughly 2.0 million and the weakest year for job creation since the pandemic disruptions.
  • Economists cite broad tariffs, tighter immigration enforcement, and rising AI investment as key forces cooling hiring and keeping the labor market in a low-hire, low-fire mode.
  • The BLS said it will modify its birth-death model starting in January to incorporate current sample information each month to improve job-count estimates.
  • Hiring in December was concentrated in food services and healthcare, while retail and parts of manufacturing shed jobs, reflecting uneven labor demand across sectors.