A Dour December: US Job Creation Hits Lowest Point Since Covid

In December 2025, the US job market revealed troubling trends as the addition of only 50,000 new jobs marked the weakest growth since the onset of the Covid pandemic. Despite a decline in the unemployment rate to 4.4%, overall job gains throughout the year were the lowest since 2020. The average monthly job growth dropped to 49,000, significantly lower than the previous year’s 168,000.

The article highlights the impact of political changes under President Donald Trump, including tariffs and an immigration crackdown, on the job market. While the economy has maintained a steady 4.3% growth rate driven by consumer spending and increased exports, this has not equated to robust job creation. Notably, retail and manufacturing sectors witnessed losses, while healthcare, bars, and restaurants saw some hiring.

The Federal Reserve’s response to the sluggish job creation included reducing key lending rates, which now stand at 3.6%, the lowest in three years. However, debates within the Fed regarding further cuts reflect uncertainty about the economy’s trajectory. Analysts, such as Ellen Zentner from Morgan Stanley, assert that the labor market is no longer favorable for job seekers, predicting that the divided Federal Reserve will likely maintain the current approach until clearer data emerges. Ultimately, the report stresses that the monthly jobs report remains a crucial economic indicator, attracting significant attention, especially when political figures reference unpublished data in the media.