The US job market ended 2025 on a quiet note — and many are asking, is this slowdown here to stay?
In December, employers added just 50,000 jobs, far below expectations.
Yet the unemployment rate ticked down slightly to 4.4%, a glimmer of stability in an otherwise sluggish year.
Overall, 2025 saw the smallest annual job gains since the Covid pandemic in 2020, averaging just 49,000 new roles per month.
This was compared with 168,000 in 2024.
Why the slowdown? Businesses have been navigating a whirlwind of policy shifts under President Trump.
These include tariffs and immigration crackdowns, as well as cuts in government spending.
Economic Growth Slows
Despite that, the economy held up, growing at 4.3% annualized in the third quarter, powered by consumer spending and exports.
But the growth hasn’t translated into robust hiring. Retailers and manufacturers shed jobs, while healthcare and hospitality added a few.
The Federal Reserve has responded with rate cuts, trimming borrowing costs to 3.6%, the lowest in three years.
But economists remain split on whether rates should drop further.
“The labour market is no longer working in favour of job seekers,” said Ellen Zentner, chief economic strategist at Morgan Stanley.
“Lower rates are likely coming, but patience will be required.”
So, the US economy is growing, but for workers, opportunities are cooling.
The big question now: can growth and job creation ever fully catch up, or are we in a new normal of cautious expansion?
