The U.S. economy saw modest job growth in December as employers hired at a steady pace amid economic uncertainty.
The Labor Department on Friday reported that employers added 50,000 jobs in December. That figure was cooler than the expectations of economists polled by LSEG, who projected 60,000 jobs would be added for the month.
The unemployment rate declined slightly to 4.4% in December. That reading was lower than economists’ expectations of a 4.5% rate. The decline comes after the unemployment rate was initially reported as rising to 4.6% in November, which was the highest it’s been since September 2021, though it was revised to 4.5% after the BLS made a routine population adjustment for the latest report.
Revisions were made to the payroll numbers for the prior two months, with October’s report revised down by 68,000 from a loss of 105,000 to a loss of 173,000 jobs; while November’s report was revised down by 8,000 from a gain of 64,000 to 56,000.
Taken together, employment in October and November was 76,000 jobs lower than previously reported.
Private payrolls added 37,000 jobs in December, below the LSEG estimate of 64,000 jobs.
Government payrolls grew by 13,000 jobs in December, with gains in local government (+18,000) and federal government (+2,000) partially offset by a decline in state government employment (-7,000).
The manufacturing sector shed 8,000 jobs in December, which was a steeper decline than the loss of 5,000 jobs estimated by LSEG economists.
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Food services and drinking places added 27,000 jobs in December, an increase from the average of 12,000 jobs added per month in 2025.
Healthcare businesses continued to add jobs in December, with a gain of 21,000 jobs for the month led by hiring at hospitals (+16,000). The healthcare sector averaged 34,000 jobs added per month in 2025, which was lower than the 56,000 average in 2024.
Social assistance firms added 17,000 jobs in December, which were mostly in individual and family services (+13,000).
Retail businesses lost 25,000 jobs in December, with declines in warehouse clubs, supercenters and general merchandise retailers (-19,000) and food and beverage retailers (-9,000) partially offset by gains among electronics and appliance retailers (+5,000).
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The labor force participation rate was little changed in December at 62.4%, after remaining relatively steady throughout 2025.
The number of people employed part-time for economic reasons was 5.3 million in December after rising by 980,000 over the course of 2025. These individuals would’ve preferred full-time employment but were working part-time because their hours were reduced, or they were unable to find full-time jobs.
The number of long-term unemployed, defined as those who have been jobless for 27 weeks or more, was little changed in December at 1.9 million – though the figure increased by 397,000 last year. The long-term unemployed accounted for 26% of all unemployed people in December.
This is a developing story. Please check back for updates.
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