United States: Job gains disappoint in December
Latest reading: The US labor market recorded an increase of 50,000 jobs in December 2025, a slower pace than the 56,000 gain reported for November and modestly short of market expectations. Job creation remained concentrated in consumer-facing services, health-related fields, and social support roles, while employment in retail contracted over the month. Staffing levels at the federal government were broadly stable.
Taking a broader view, the latest data shows that the economy has added very few net jobs since April; from April to December, job gains averaged 12,000 per month vs over ten times that amount in the prior 12 months.
Panelist insight: Digging into the data, TD Economics’ Thomas Feltmate said:
“The labor market appears to have stabilized at the end of last year. Smoothing through volatility, private payrolls have largely steadied in recent months while the unemployment rate ticked down from its cycle high reached in November. But make no mistake, the combination of big policy changes and a significant ramp-up in AI investments resulted in a measurable softening in the job market last year, with the economy adding only a third of the jobs was created in 2024.”