US Job Creation Plummets to Post-COVID Low in 2025
Washington D.C. - The United States experienced its weakest year for job creation since the COVID-19 pandemic in 2025, with growth slowing significantly, according to Labor Department data released this week. Employers added a modest 50,000 jobs in December, fewer than expected, bringing the monthly average for the year to 49,000, a sharp decline from the 168,000 jobs added per month in 2024. Despite the slowdown, the unemployment rate dipped to 4.4%.
The December figures capped a year marked by economic shifts and policy changes. Job gains last year were the smallest since 2020, when the Covid pandemic led to widespread cuts. The US economy has held up in the face of these shifts, growing at an annual rate of 4.3 over the th.
The slowdown occurred despite a 4.3% economic growth rate, driven primarily by consumer spending and exports. However, the labor market struggled, with downward revisions to job creation figures for October and November. Losses were particularly pronounced in the retail and manufacturing sectors, according to the BBC.
Businesses have been operating in an environment marked by US President Donald Trump's dramatic policy changes, including tariffs, an immigration crackdown and cuts to government spending.
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