The Job Market's Mixed Signals in 2025

The last jobs report of 2025 is out, and it's a mixed bag. Economists had different ideas about what to expect. Some thought 55, 000 jobs were added in December, which is a bit less than the 64, 000 jobs added in November. But others believed the holiday season could have pushed the number up to 105, 000. The unemployment rate is expected to drop to 4. 5% from 4. 6% in November. But don't get too excited. Experts say the job market isn't as strong as it seems. The real job growth has been weak for a while now. In fact, 2025 had the worst job growth in decades, except for the pandemic year of 2020. Some industries did better than others. Health care and leisure and hospitality added the most jobs. These two sectors make up about 22% of all jobs but accounted for 84% of the job gains in 2025. The rest of the job market? Not so good. Many industries are in a "hiring recession. "The job market has been sluggish for most of the year. High uncertainty, changes in immigration, and companies testing AI have all played a role. The latest data shows that businesses are hiring less and job openings are down. It's taking longer for people to find work. But there might be a silver lining. Job cut announcements fell to a 17-month low in December. And hiring announcements were the highest since 2022. This could mean the worst of the slowdown is over. The December jobs report should give a clearer picture of the job market after the government shutdown messed up the data for October and November.