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A “Now Hiring” sign at the Appalachian State University internship and job fair in Boone, North Carolina, US, on Friday, Oct. 24, 2025. <\/p>\n
Allison Joyce | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
The U.S. labor market ended 2025 on a soft note, with job creation in December less than expected, according to a report Friday from the Bureau of Labor Statistics.<\/p>\n
Nonfarm payrolls rose a seasonally adjusted 50,000 for the month, lower than the downwardly revised 56,000 in November and short of the Dow Jones estimate for 73,000. <\/p>\n
At the same time, the unemployment rate fell to 4.4%, compared to the forecast for 4.5%.<\/p>\n
The report presented a muddy view of the labor market, with companies reporting a low level of hiring but households showing employment gains. <\/p>\n
In addition, revisions brought totals down for the prior months. The November total saw a slight downward revision of 8,000 to the payrolls number, while October’s loss was even more than originally reported, now at 173,000 compared to the prior estimate of 105,000.<\/p>\n
For the full year, payroll gains averaged 49,000 a month, compared to 168,000 in 2024, according to the BLS.<\/p>\n
Federal Reserve officials have been watching the jobs picture closely for guidance on the future path of interest rates.<\/p>\n
Despite some clamoring for additional rate cuts on top of the three the Fed approved in the latter part of last year, the economy looked in fairly solid shape as a tumultuous year came to a close.<\/p>\n
The Atlanta Fed’s rolling measure of incoming economic data is pointing to gross domestic product increasing at a 5.4% annualized pace in the fourth quarter. That comes off a third quarter in which the broad growth measure rose at a 4.3% rate.<\/p>\n
In addition, consumers, who power two-thirds of the $31 trillion U.S. economy, spent heavily during the holiday season. Adobe estimates that online spending rose 6.8% from a year ago to record-setting $257.8 billion.<\/p>\n
Markets expect the Fed to stay on hold for a period following the succession of cuts that began in September. The next cut is not priced in until June, though that could change following the payrolls report.<\/p>\n