US Job Creation Plummets to Post-COVID Low in 2025
Washington D.C. - U.S. job creation experienced a significant slowdown in 2025, marking the weakest year for the employment market since the COVID-19 pandemic, according to Labor Department data released this week. The economy added a modest 50,000 jobs in December, fewer than expected, while the unemployment rate dipped to 4.4%.
The year's average of 49,000 jobs added per month represents a sharp decline from the 168,000 jobs added monthly in 2024, according to BBC Business. Job gains last year were the smallest since 2020, when the Covid pandemic led to widespread cuts.
Despite an economic growth rate of 4.3%, the labor market struggled, with downward revisions to job figures for October and November. Losses were particularly felt in the retail and manufacturing sectors, according to BBC Business.
The slowdown occurred amidst a backdrop of significant policy changes implemented by US President Donald Trump, including tariffs, stricter immigration policies, and cuts to government spending, according to BBC Business. While the US economy has largely held up in the face of these shifts, the labor market appears to be feeling the effects.
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