In December, U.S. employers added 50,000 jobs, falling short of the 55,000 expected, while the unemployment rate slightly decreased to 4.4%. Job growth over the year was muted, with revisions showing larger declines in October and November than previously reported. Employers announced 1.2 million layoffs in 2025, a 58% increase from the prior year, prompting the Federal Reserve to cut interest rates to encourage hiring. Looking ahead, forecasts suggest an average of 25,000 new jobs per month in the first half of 2026, with the unemployment rate potentially rising to 4.8%.
