US job creation in 2025 slows to weakest since Covid
The number of jobs created in the United States increased only modestly in December, as it ended a weak year for the jobs market in the world’s largest economy.
Employers added 50,000 jobs in the final month of 2025, according to Labor Department data, which is fewer than expected. But the unemployment rate fell to 4.4%.
Job gains last year were the weakest since 2020, when the Covid pandemic led to widespread reductions.
Businesses are operating in an environment marked by US President Donald Trump’s radical policy changes, particularly in terms of tariffs, immigration crackdowns and reductions in public spending.
The US economy has resisted these changes, growing 4.3% annually in the three months to September.
But the expansion – driven by stable consumer spending and export growth – has not been accompanied by significant job creation.
On average, the United States added just 49,000 positions per month in 2025, compared to an estimated gain of 168,000 per month the previous year.
The Labor Department said the United States also created 76,000 fewer new jobs in October and November than expected.
Retailers and manufacturers were among the sectors posting losses last month, which were offset by hiring at health care employers and bars and restaurants.
The data underscores the mixed dynamics facing job seekers in the United States, where hiring has slowed sharply over the past year but fears of mass layoffs have not materialized.
The US Federal Reserve responded to the slowdown by lowering its key interest rate in the hope of providing a boost to the economy.
The central bank cut interest rates three times last year starting in September, despite concerns that inflation would continue to bubble. Its key rate now hovers around 3.6%, its lowest level in three years.
But policymakers are divided on the extent to which borrowing costs should be reduced.
Analysts say the latest figures will do little to resolve these debates. The unemployment rate, which jumped in November to 4.5%, fell last month to 4.4%, where it stood in September.
“Today’s report confirms what we believe has been evident for some time: the labor market is no longer working in favor of job seekers,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
But she added: “Until the data provides clearer direction, a divided Fed will likely stay that way. Lower rates are likely this year, but markets may need to be patient.”
The monthly jobs report is among the most closely watched economic data released by the U.S. government.
Its publication has always been strictly monitored, for fear that some people could use early access to information for financial gain.
That dynamic is one reason why, in some circles, a social media post by Trump on Thursday, incorporating some of the then-unpublished data, attracted almost as much attention as the report itself.
