US Non-Farm Payroll Report – December 2025
The U.S. labor market showed signs of slowing in December 2025, with only 50,000 jobs added, missing expectations of ~60,000. The unemployment rate ticked slightly lower at 4.4%, while wage growth remained moderate, suggesting cautious hiring across retail, manufacturing, and construction. Health care and social assistance were the main sectors showing gains, but overall monthly job growth reflects one of the softest years since the pandemic. This slowdown has kept the Federal Reserve on alert, as markets weigh whether the labor market can sustain economic growth without renewed rate adjustments.
Investors responded with mild stock gains as softer payrolls point to a potential pause in rate hikes, while the U.S. Dollar and bond yields showed mixed reactions. Overall, the report reinforces a cooling trend in employment growth, highlighting the balance between slowing momentum and stable unemployment.