The US economy added 50,000 jobs in December, falling short of expectations, but the unemployment rate declined to 4.4%, the highest since 2021 except for November 2025. Analysts called the report “goldilocks,” signaling a balanced labor market.
Revisions showed October and November payrolls were weaker than initially reported, with combined employment 76,000 lower than first estimated. Labor force participation remained steady at 62.4%, while the employment-population ratio held at 59.7%.
Hourly wages rose 0.3% in December, a 3.8% increase year-over-year, slightly above expectations. Job gains were concentrated in food services, healthcare, and social assistance, while retail lost 25,000 positions. Federal employment was largely unchanged.
Long-term unemployment remains high at 1.9 million, accounting for 26% of all jobless Americans. Part-time workers seeking full-time jobs rose to 5.3 million, and marginally attached workers stayed near 1.8 million.
The report shows full-time jobs rebounded last month, with a net increase of 890,000, reversing part-time trends. Multiple jobholders fell by 444,000, the second-largest drop since COVID-19.
Experts say the data suggests the labor market is steady, leaving the Federal Reserve on autopilot for now. Inflation, not employment, is expected to guide future interest rate decisions.
Follow on Google News
