US economy added 50K jobs in December as unemployment rate declines

• December job gains of 50,000 came in below the 60,000 forecasted by economists, continuing a trend of modest employment growth
• Unemployment rate declined to 4.4% from November's 4.6%, which had been the highest level since September 2021
• Downward revisions totaling 76,000 jobs for October and November signal persistent weakness, with October revised to show a loss of 173,000 positions

Summary: US Jobs Report December 2025

Key Figures

The U.S. economy added 50,000 jobs in December 2025, falling short of economist expectations of 60,000. The unemployment rate declined to 4.4% from November's 4.6%, beating forecasts of 4.5%. November's 4.6% rate had marked the highest unemployment level since September 2021.

Significant Revisions

The Labor Department made substantial downward revisions to prior months:

• October: Revised from a loss of 105,000 to a loss of 173,000 jobs (down 68,000)
• November: Revised from a gain of 64,000 to 56,000 jobs (down 8,000)
• Combined impact: 76,000 fewer jobs than previously reported for October-November

Market Implications

The December report reflects modest job growth amid economic uncertainty, with employers hiring at a steady but cautious pace. While the headline unemployment rate improved, the significant downward revisions to previous months paint a weaker picture of labor market momentum than initially reported.

The cooling job additions, combined with the substantial negative revisions, suggest softening labor market conditions. However, the declining unemployment rate provides a mixed signal, potentially indicating labor force participation changes rather than purely strong hiring dynamics.

This data will be critical for Federal Reserve policy considerations, as policymakers balance inflation concerns against employment stability. The weaker-than-expected job creation and major revisions may influence monetary policy decisions in early 2026.

Context

The report comes as the economy navigates uncertainty heading into 2026, with hiring patterns showing deceleration from stronger growth periods observed earlier in the recovery cycle.