US Job Growth Slowed Sharply in 2025 as Labor Market Weakened

Labor market data for 2025 showed a marked slowdown in job creation across the United States, with annual employment growth falling well below the previous year’s levels.

Throughout 2025, job gains were concentrated in sectors such as healthcare and social assistance, while other areas including government, manufacturing, and transportation reported job losses. The overall increase in nonfarm payroll employment for the year was substantially lower than in 2024.

Monthly job growth was especially weak during the middle months of 2025. Revisions to official estimates revealed that job additions in May, June, and July were much lower than initially reported. This contributed to the overall subdued employment growth seen for the year.

What the numbers show

• Approximately 50,000 jobs were added in December 2025
• Total job growth in 2025 was about 584,000 positions
• The unemployment rate in December 2025 was around 4.4%

The Bureau of Labor Statistics revised its figures for the period between April 2024 and March 2025, indicating that 911,000 fewer jobs were created than previously estimated. These adjustments highlighted the extent of the slowdown in hiring activity during this period.

Compared to 2024, when roughly 2 million jobs were added, the 2025 total represented a sharp decrease in employment growth. The labor market in 2025 was described as exhibiting a “no hire, no fire” pattern, with minimal hiring and layoffs reported throughout the year.

In response to the weakening labor market, the Federal Reserve implemented three interest rate cuts during 2025. These actions were taken as employment gains slowed and job creation remained limited across many sectors.

Job growth in 2025 was not evenly distributed, with healthcare and social assistance sectors seeing the most new positions. Meanwhile, government, manufacturing, and transportation experienced declines in employment, reflecting uneven conditions across the labor market.

By the end of 2025, the unemployment rate had edged down slightly to around 4.4%. Despite this, the overall pace of hiring remained subdued, and job creation totals for the year were among the lowest in recent years.

* This article is based on publicly available information at the time of writing.