The nation’s unemployment rate inched down in December as the economy added 50,000 nonfarm jobs over the month, the U.S. Bureau of Economic Statistics (BLS) reported Friday.
At 4.4%, December’s seasonally-adjusted unemployment rate is down from both November’s 4.5% final number and its 4.6% initial estimate. Total nonfarm employment rose 50,000 month-to-month, less than economists’ expectations of a 60,000 gain, holding steady at 159.5 million.
Payroll employment rose by 584,000 in 2025, an average monthly gain of 49,000. In December, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3%, to $37.02. Over the past 12 months, average hourly earnings have increased by 3.8%.
The number of unemployed declined 278,000, from 7,781,000 to 7,503,000. Notably, a subset, the number of discouraged workers (those who believed that no jobs were available for them) decreased by 183,000 over the month.
Employment in food services and drinking places continued to trend up in December, adding 27,000 jobs from November and an average of 12,000 per month in 2025.
Likewise, health care employment continued its upward trend, increasing 21,000 over the month and 34,000 per month during the year.
Retail trade lost 25,000 jobs from November, as employment declined in warehouse clubs, supercenters, and other general merchandise retailers (-19,000), as well as in food and beverage retailers (-9,000). Electronics and appliance retailers added 5,000 jobs. At 15.5 million, December’s retail trade employment was off from 16.0 million year-ago.
Federal government employment added 2,000 jobs in December, bucking its year-long trend. Since reaching a peak in January, federal government employment is down by 277,000, or 9.2%. The number of federal employees is propped up by those on paid leave receiving ongoing severance incentives to leave their jobs, because they are counted as employed.
State government employment fell to 5.6 million from 5.5 million in December of 2024, while the local government jobs held steady at 15.2 million.
The number of jobs in construction increased by 11,000 for the month and from 8.2 million to 8.3 million year-to-year. At 12.7 million, the number of manufacturing-sector jobs declined 8,000 month-to-month and from 12.8 million in December of 2024.
In December, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3%, to $37.02. Over the past 12 months, average hourly earnings have increased by 3.8%.
