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 capped a year of sluggish growth in the employment market.
The US economy added an average of just 49,000 roles per month in 2025, a significant drop from the 168,000 monthly gain recorded the previous year. 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%.
The tepid job growth occurred against a backdrop of economic expansion. The US economy grew at an annual rate of 4.3% in the three months leading up to September, fueled by consistent consumer spending and increased exports. However, this growth failed to translate into substantial job creation.
Businesses operated within an environment shaped by President Trump's policy changes, including tariffs, stricter immigration policies, and government spending cuts. These shifts created uncertainty and potentially dampened hiring decisions across various sectors. Retailers and manufacturers were particularly affected.
The slowdown in job creation raises concerns about the sustainability of the economic expansion. While consumer spending and exports have been robust, the lack of corresponding job growth suggests potential vulnerabilities in the labor market. Economists will be closely monitoring upcoming economic data to assess whether this trend continues into 2026 and its potential impact on overall economic performance.
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