US job creation in 2025 slowed to weakest since Covid as employers added a modest 50,000 jobs in December, according to Labor Department data. This figure fell short of expectations and marked the end of a year with the smallest job gains since the widespread cuts of 2020 during the Covid pandemic.

The US economy added an average of just 49,000 roles per month in 2025, a significant drop from the estimated gain of two million per month the year before. The Labor Department also revised down its estimates for October and November, indicating 76,000 fewer new positions were created than initially reported. Despite the slowdown in job creation, the unemployment rate dipped to 4.4 percent.

The subdued job growth occurred against a backdrop of economic shifts driven by President Donald Trump's policies, including tariffs, stricter immigration enforcement, and government spending cuts. While the US economy demonstrated resilience, growing at an annual rate of 4.3 percent in the three months to September, this expansion, fueled by consumer spending and export growth, did not translate into substantial job creation. Retailers and manufacturers were among the sectors impacted.

The slower pace of job creation raises concerns about the sustainability of economic growth. While consumer spending has remained robust, the lack of corresponding job growth could signal weakening demand in the future. Businesses may be hesitant to hire amid policy uncertainty and concerns about the long-term economic outlook.

Looking ahead, the labor market's performance will likely depend on the continued strength of consumer spending and export demand, as well as the impact of government policies. Economists will be closely watching upcoming economic data for signs of further weakening in the labor market and potential implications for overall economic growth.