The U.S. labor market closed out 2025 on a softer note, according to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). December’s data points to slower hiring momentum, downward revisions to prior months and a labor market that has cooled markedly compared with recent years.
Headline Labor Market Results
- The U.S. economy added 50,000 jobs in December 2025, well below most economists’ expectations and far under the pace seen earlier in the post‑pandemic recovery.
- The unemployment rate declined to 4.4%, slightly lower than the 4.5% projection and down from November’s revised rate.
- Job gains in 2025 totaled roughly 584,000, making it the weakest year for employment growth outside of recessions since 2003 and the slowest since 2020 overall.
On CNN News Central, Matt Egan described the December report as a “mixed end to a weak year,” reflecting subdued hiring even as headline unemployment edged lower.
Revisions Underscore Slowing Momentum
The December report included negative revisions to prior months, reinforcing the view that job growth slowed more sharply late in the year than previously understood:
- October 2025 payrolls were revised down by 68,000 jobs, from an already weak initial estimate to a net loss of 173,000 jobs, making it the weakest month for job gains since late 2020.
- November 2025 payrolls were revised down by 8,000 jobs, lowering total job gains for the month to 56,000.
Combined, the October and November revisions subtracted 76,000 jobs from previously reported employment totals. These adjustments suggest the labor market entered the final quarter of 2025 with significantly less momentum than earlier data had implied.
Revisions of this magnitude are not unusual, but they carry added weight this year following data collection disruptions tied to the federal government shutdown. The Bureau of Labor Statistics has said regular data collection for October was suspended during the shutdown and extended for subsequent months, increasing reliance on incomplete responses in initial estimates.
A “Low Fire, Low Hire” Labor Market
Across multiple indicators, analysts point to a labor market characterized by both low hiring and low firing:
- Employers appear reluctant to expand payrolls aggressively.
- Layoffs remain relatively contained, helping keep the unemployment rate stable despite weak hiring.
- Structural pressures, including automation, artificial intelligence adoption and cost‑cutting across both private and public sectors, are contributing to cautious workforce planning.
This dynamic helps explain why unemployment can fall even as job creation remains modest.
Construction and Industry‑Specific Trends
While December’s full sector‑level detail remains limited, recent data provide important context for construction employment:
- Construction employment showed resilience earlier in the quarter, adding 28,000 jobs in November 2025, driven largely by gains in nonresidential specialty trade contractors.
- Construction lost an estimated 11,000 jobs in December, according to CNN’s analysis of the BLS data, underscoring the month‑to‑month volatility facing the sector even as longer‑term demand drivers remain in place.
- December reporting suggests possible pullbacks in construction and manufacturing, even as health care and hospitality accounted for much of the modest job growth.
For the construction industry, this points to uneven conditions, with certain project types and regions continuing to add workers, while broader economic uncertainty tempers hiring elsewhere.
Wage Growth and Labor Force Signals
- Average hourly earnings rose modestly year over year, indicating continued competition for skilled labor even as overall hiring slowed.
- Labor force participation trends suggest that demographic shifts and worker availability continue to influence headline unemployment figures.
Moderate wage growth may ease inflation pressures while still reflecting ongoing demand for specialized talent, including in construction trades.
What to Expect in 2026
The December jobs report reinforces expectations that 2026 could begin with a cautious hiring environment:
- Employers are likely to prioritize productivity, automation and project efficiency over rapid workforce expansion.
- Construction employment may remain comparatively resilient where infrastructure, public‑sector and large nonresidential projects are active, though volatility is likely.
- Policymakers will closely watch labor data as they assess interest‑rate policy, particularly if weak job growth continues alongside moderating inflation.
As always, month‑to‑month comparisons should be interpreted carefully, particularly following data disruptions and revisions earlier in the year.
