Sluggish hiring closes out a frustrating year for job seekers though unemployment slips to 4.4%

"Sluggish hiring last month closed out a year of weak employment gains that have frustrated job seekers even as layoffs and unemployment have also been low. Employers added just 50,000 jobs in December, nearly unchanged from a downwardly revised figure of 56,000 in November, the Labor Department said Friday. The unemployment rate slipped to 4.4%, its first decline since June, from 4.5% in November, a figure also revised lower. The data suggests that businesses are reluctant to add workers even as economic growth has picked up."

"Many firms hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump's shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs. Nearly all the jobs added in December were in the health care and restaurant and hotel industries. Manufacturing, construction and retail companies all shed jobs."

December brought just 50,000 jobs amid a year of sluggish hiring, with the unemployment rate dipping to 4.4% from a revised 4.5%. Employers added nearly the same number as November's revised figure, underscoring reluctance to expand payrolls despite pickup in economic growth. Many firms already filled positions after the pandemic and therefore need fewer hires, while uncertainty from shifting tariff policies, elevated inflation and the spread of artificial intelligence has restrained hiring. Job gains were concentrated in health care and hospitality, while manufacturing, construction and retail sectors shed positions, producing uneven labor-market outcomes.

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