Employment Research Brief

Measured slowdown, with signs of stability. Free from federal shutdown distortions, the December jobs report provided a clearer read on the labor market and reinforced a pattern of slower, narrowly concentrated hiring, even as the unemployment rate stayed contained. Total nonfarm payrolls rose by 50,000 in December. That brings average job growth in 2025 to roughly 49,000 per month, down sharply from more than 167,000 per month in 2024, underscoring a deceleration in hiring momentum. Meanwhile, the unemployment rate edged down to 4.4 percent, pointing to a labor market that remains broadly balanced rather than weakening outright. Separately, the Challenger, Gray & Christmas report showed December had the fewest announced layoffs of the year, while select service industries — particularly those less exposed to tariff-related pressures — continued to add jobs, supporting cautious optimism about economic conditions.