U.S. economy added 50,000 jobs in December as unemployment rate falls
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The U.S. economy added 50,000 jobs in December, while the unemployment fell to 4.4%, the Labor Department said on Friday.
Why it matters: Last year ended with solid hiring and lower joblessness after months of weak job gains that raised fears about the health of the economy.
By the numbers: The unemployment rate fell from November's revised 4.5%, which was a four-year high, as the share of the adult population that was employed ticked up.
- In less sunny news, the government said that job gains in October and November were lower than initially estimated, with payrolls a combined 76,000 lower than previously reported.
Zoom in: Employment rose in restaurants and bars and health care, and fell in the retail sector.
The big picture: The job market was stuck in a "low hire, low fire" state throughout 2025. There are questions about which way that might break this year.
- A huge shift in immigration patterns — a result of the Trump administration's stricter border policies — makes it difficult for economic policymakers to judge the rate of hiring necessary to keep the unemployment rate stable.
- The Federal Reserve Bank of Dallas estimates that figure has collapsed to about 30,000 new jobs per month, a fraction of the roughly 250,000 necessary in 2023.
What to watch: The Fed is watching for evidence of further labor market weakness, though officials have suggested a higher bar for future interest rate cuts after three consecutive reductions last year.
- "With the hiring rate low, no one wants the labor market to deteriorate much further," Richmond Fed president Tom Barkin said in a speech this week.
- "With inflation above target now for almost five years, no one wants higher inflation expectations to get embedded," Barkin added. "It's a delicate balance."
