The U.S. economy added just 50,000 jobs in December, marking the worst year for hiring since 2020, when the COVID-19 pandemic halted global economic activity. According to the Bureau of Labor Statistics (BLS), 2025 saw a total payroll employment increase of 584,000, averaging 49,000 jobs per month. This is a significant drop from the 168,000 average monthly gains recorded in 2024.
The unemployment rate slightly decreased to 4.4% in December. Despite the modest job additions, the year ended with the weakest job growth since the global financial crisis in 2009, excluding the pandemic year of 2020. The BLS reported that the number of long-term unemployed Americans, those jobless for 27 weeks or more, rose by 397,000 over the year, reaching 1.9 million people.
Job growth decelerated significantly after President Donald Trump announced tariffs in April, contributing to the sluggish labor market.
The goods-producing sector, including manufacturing, failed to add new jobs, while health care, social assistance, and food and drinking establishments led job growth. Despite near-record job security, finding employment remains challenging due to low hiring rates. Average hourly earnings increased by 3.8% over the year, with a modest 0.3% rise in December
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