US Job Market Closes Out Weakest Year Since Pandemic with Modest Growth
In a mixed bag of economic news, the US job market reported modest gains in December, bringing the year's total to 584,000 new hires, the lowest since the pandemic. While this figure is down from President Trump's predecessor, Joe Biden's presidency, which saw an average of 2 million new jobs per month, it still underscores a concerning trend for the labor market.
The latest data showed that employers added 50,000 jobs to the US economy last month, falling short of economists' expectations of around 73,000. This modest growth cements December's place as the weakest month of job creation since the pandemic began.
Unemployment rates rose to a four-year high in November but declined slightly to 4.4% in December. While this drop is welcome news for some, others are concerned about the slow pace of job growth and its potential impact on inflationary pressures.
Critics of the Trump administration's economic policies have seized on the weak labor market data, pointing out that despite promises to create millions of jobs, the actual number of new hires has been disappointing. Elizabeth Warren, a Democratic senator from Massachusetts, said in a statement that "job growth in 2025 was the weakest in over a decade... Instead of lowering costs like he promised, the second year of the Trump presidency is kicking off with a weaker job market and higher prices."
Economists describe the current labor market as being in a "no hire, no fire" phase, where job growth continues but remains subdued. The Federal Reserve is expected to consider this data at its next policy meeting, when it will decide whether to lower interest rates or keep them on hold.
Federal Reserve officials have signaled that a pause in rate cuts is likely, with some participants suggesting that the current economic outlook does not justify further reductions. This stance reflects concerns about inflationary pressures, which rose 2.7% in November, despite cooling slightly after peaking at 3% in September.
As the economy navigates these uncertain times, investors and policymakers will be closely watching for signs of improvement or deterioration in the labor market and inflationary pressures.
In a mixed bag of economic news, the US job market reported modest gains in December, bringing the year's total to 584,000 new hires, the lowest since the pandemic. While this figure is down from President Trump's predecessor, Joe Biden's presidency, which saw an average of 2 million new jobs per month, it still underscores a concerning trend for the labor market.
The latest data showed that employers added 50,000 jobs to the US economy last month, falling short of economists' expectations of around 73,000. This modest growth cements December's place as the weakest month of job creation since the pandemic began.
Unemployment rates rose to a four-year high in November but declined slightly to 4.4% in December. While this drop is welcome news for some, others are concerned about the slow pace of job growth and its potential impact on inflationary pressures.
Critics of the Trump administration's economic policies have seized on the weak labor market data, pointing out that despite promises to create millions of jobs, the actual number of new hires has been disappointing. Elizabeth Warren, a Democratic senator from Massachusetts, said in a statement that "job growth in 2025 was the weakest in over a decade... Instead of lowering costs like he promised, the second year of the Trump presidency is kicking off with a weaker job market and higher prices."
Economists describe the current labor market as being in a "no hire, no fire" phase, where job growth continues but remains subdued. The Federal Reserve is expected to consider this data at its next policy meeting, when it will decide whether to lower interest rates or keep them on hold.
Federal Reserve officials have signaled that a pause in rate cuts is likely, with some participants suggesting that the current economic outlook does not justify further reductions. This stance reflects concerns about inflationary pressures, which rose 2.7% in November, despite cooling slightly after peaking at 3% in September.
As the economy navigates these uncertain times, investors and policymakers will be closely watching for signs of improvement or deterioration in the labor market and inflationary pressures.