U.S. Payrolls Rise 50,000 in December, Below Expectations but Unemployment Remains Solid

U.S. job growth slowed in December, with nonfarm payrolls increasing by 50,000, falling short of the Dow Jones consensus estimate of 73,000. Despite the softer-than-expected hiring pace, the unemployment rate edged lower to 4.4% from 4.5%, underscoring continued resilience in the labor market even as momentum cooled toward year-end.

According to the Bureau of Labor Statistics, payroll growth was concentrated in food services and drinking places, health care, and social assistance, while retail trade shed jobs. Employment gains remained modest overall, reflecting a labor market that has stabilized after a much stronger expansion earlier in the cycle.

The household survey showed little change across key labor metrics. The number of unemployed stood at 7.5 million, while labor force participation held steady at 62.4% and the employment-population ratio remained unchanged at 59.7%. Long-term unemployment was largely flat in December but rose over the year, now accounting for 26% of total unemployment. Part-time employment for economic reasons also stayed elevated, highlighting ongoing slack beneath the headline figures.

Wage growth remained firm but showed signs of moderation. Average hourly earnings rose 0.3% month over month to $37.02, bringing the year-over-year increase to 3.8%. The average workweek edged lower to 34.2 hours, suggesting some softening in labor demand at the margin.

Revisions to prior months further reinforced the cooling trend, with October and November payrolls revised down by a combined 76,000. On a full-year basis, payroll employment rose by 584,000 in 2025, a sharp slowdown from the 2.0 million jobs added in 2024, signaling that the labor market is transitioning from expansion toward a more subdued, late-cycle phase.