US job creation in 2025 slowed to weakest since Covid as the year concluded with modest gains in December, signaling a cooling employment market. Employers added only 50,000 jobs in the final month of the year, according to Labor Department data, falling short of expectations. The unemployment rate, however, dipped slightly to 4.4%.

Job gains in 2025 marked the smallest annual increase since the widespread cuts of 2020 during the Covid-19 pandemic. The US economy added an average of just 49,000 roles per month throughout the year, a significant drop from the estimated gain of two million jobs 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.

The subdued job creation figures reflect an economy operating under the influence of President Donald Trump's policy shifts, including tariffs, stricter immigration policies, and government spending cuts. While the US economy demonstrated resilience, growing at an annual rate of 4.3% in the three months leading up 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 experiencing slower growth. The tepid job numbers raise concerns about the sustainability of economic growth and the potential impact on consumer confidence and spending.

Looking ahead, economists will be closely monitoring upcoming economic data to assess whether the slowdown in job creation is a temporary blip or a sign of a more significant economic downturn. The impact of ongoing policy changes and global economic conditions will also play a crucial role in shaping the future employment landscape.