JANUARY 12, 2026 – – ANEMIC JOB CREATION IN 2025
The final 2025 jobs report was released last week. The data showing the addition of 50,000 jobs in December, this fell short of expectations of 73,000 new positions. On average, there were 49,000 new jobs created per month in 2025 compared to 168,000 jobs per month in 2024. The unemployment rate in December was down 0.2 percent from the previous month at 4.4 percent. Average hourly earnings were up 0.3 percent for the month, or 3.8 percent for the year.
The takeaway is that companies have slowed hiring but also firing, and the annual payroll gains in 2025 are the worst since the recession in 2003. (Though there is a gap in data collection in the fourth quarter of last year due to the government shutdown). The January jobs report is expected to show a better picture of the true situation with up-to-date and timely data.
Despite the softening labor market, the economy looks to be in fair shape, with the Atlanta Fed expecting a 5.4 percent annualized GDP growth in the fourth quarter, compared to Q3 2025 which grew at 4.3 percent.