US jobs data: Hiring stays sluggish in December with 50,000 additions; unemployment rate dips to 4.4%
Hiring in the United States remained subdued in December, capping a year of weak employment gains, even as the unemployment rate edged lower, according to data released by the US Labor Department on Friday, AP reported.
Employers added 50,000 jobs in December, nearly unchanged from a downwardly revised 56,000 jobs added in November. The unemployment rate slipped to 4.4 per cent from 4.5 per cent in November, marking its first decline since June, the data showed.
The figures indicate that businesses remain cautious about expanding their workforces despite an improvement in overall economic growth. Many firms hired aggressively in the post-pandemic phase and now appear reluctant to add more workers, while others are holding back amid uncertainty linked to shifting US tariff policies, elevated inflation and the growing impact of artificial intelligence on jobs.
The December report is being closely watched as it offers the first clear reading on the labour market in three months. The government did not release employment data in October due to a six-week shutdown, while November figures were distorted by the same disruption.
December’s numbers also close out a year marked by slowing job creation. The economy generated an average of 111,000 jobs a month in the first three months of 2025, but that pace dropped sharply to just 11,000 a month in the three months ended August, before a modest rebound to 22,000 jobs in November.
Economists note that weak hiring has emerged as a key puzzle for the US economy, which has continued to grow at a healthy pace. Growth reached an annualised 4.3 per cent in the July–September quarter last year, even as job gains softened and unemployment ticked higher through much of the year.
With hiring losing momentum, the US Federal Reserve cut its key interest rate three times late last year to support borrowing, spending and employment. However, Fed Chair Jerome Powell has signalled that policymakers may hold rates steady in the coming months while assessing how the economy evolves.
Despite low layoffs and a stable unemployment rate, economists remain divided on the outlook. Some expect hiring to pick up if growth remains strong, while others caution that automation and artificial intelligence could allow the economy to expand without a corresponding rise in jobs.
Employers added 50,000 jobs in December, nearly unchanged from a downwardly revised 56,000 jobs added in November. The unemployment rate slipped to 4.4 per cent from 4.5 per cent in November, marking its first decline since June, the data showed.
The figures indicate that businesses remain cautious about expanding their workforces despite an improvement in overall economic growth. Many firms hired aggressively in the post-pandemic phase and now appear reluctant to add more workers, while others are holding back amid uncertainty linked to shifting US tariff policies, elevated inflation and the growing impact of artificial intelligence on jobs.
The December report is being closely watched as it offers the first clear reading on the labour market in three months. The government did not release employment data in October due to a six-week shutdown, while November figures were distorted by the same disruption.
December’s numbers also close out a year marked by slowing job creation. The economy generated an average of 111,000 jobs a month in the first three months of 2025, but that pace dropped sharply to just 11,000 a month in the three months ended August, before a modest rebound to 22,000 jobs in November.
Economists note that weak hiring has emerged as a key puzzle for the US economy, which has continued to grow at a healthy pace. Growth reached an annualised 4.3 per cent in the July–September quarter last year, even as job gains softened and unemployment ticked higher through much of the year.
With hiring losing momentum, the US Federal Reserve cut its key interest rate three times late last year to support borrowing, spending and employment. However, Fed Chair Jerome Powell has signalled that policymakers may hold rates steady in the coming months while assessing how the economy evolves.
Despite low layoffs and a stable unemployment rate, economists remain divided on the outlook. Some expect hiring to pick up if growth remains strong, while others caution that automation and artificial intelligence could allow the economy to expand without a corresponding rise in jobs.
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