The U.S. Labor Department released the December jobs report on Friday, which fell short of expectations, with employers adding about 50,000 jobs compared to the anticipated 60,000-70,000. However, the unemployment rate edged down to 4.4 percent, below the expected 4.5 percent rate.
DEC. U.S. JOBS REPORT
— Shay Boloor (@StockSavvyShay) January 9, 2026
• Nonfarm Payrolls +50K vs Est. +60K
• Unemployment rate 4.4% vs Est. 4.5%
• Avg hourly earnings +3.8% YoY vs Est. 3.6%
This is a Goldilocks print. Soft enough to keep rate-cut hopes alive but strong enough to avoid recession fears. pic.twitter.com/P30pIf1YNw
The private sector added just 37,000 jobs, nearly half of what the London Stock Exchange expected, while the public sector added 13,000 jobs. Of those gains, 18,000 were in local government and 2,000 in the federal government, while state governments lost 7,000 jobs.
"Private sector payrolls coming in much weaker than expected" -- Maria Bartiromo and company cope with an underwhelming December jobs report (wait for Stephen Moore's bonkers commentary at the end) pic.twitter.com/C5D8qu5h8f
— Aaron Rupar (@atrupar) January 9, 2026
Manufacturing in particular declined more sharply than expected, with around 8,000 jobs lost last month.
The healthcare sector gained around 21,000 jobs, and the food service industry added 27,000 jobs. Both industries averaged a gain of 34,000 jobs and 12,000 jobs per month, respectively.
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Friday’s report also revised October’s job losses lower, to a decline of 173,000, while November’s job gains were revised down as well, leaving employment 76,000 lower than previously reported across those two months.
“We’re seeing a slowdown in job gains, and employment has been choppy—but the labor market isn’t falling off a cliff,” Nela Richardson, chief economist at payroll processor ADP, said.
Job openings for the month were down by 900,000.
The Trump administration is saying the jobs report is indicative of the president continuing to fix Biden-era policies, which led to record inflation and a cooling economy. They are also saying the economy will only continue to heat up in 2026.
“The December jobs report confirms that 2025 was a blockbuster year of solid job growth thanks to the return President Trump’s America First leadership, with over 650,000 jobs added since he took office," U.S. Secretary of Labor Lori Chavez-DeRemer said. "And after years of runaway inflation that crushed purchasing power for hardworking families, President Trump is cleaning up the mess he inherited from the Biden administration and making life more affordable for all Americans. Wage growth is still running strong, up 4.1 percent in the last three months, and inflation has hit its lowest level in nearly five years."
As we enter the new year, our economy continues gaining momentum and is well-positioned for even more growth as the President doubles down on his efforts to revitalize critical industries. GDP is booming, and all net job growth has continued to take place in the private sector among American-born workers. The Department of Labor will continue our efforts to execute President Trump’s mission to put American Workers First in 2026.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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