The U.S. labor market showed modest growth in December 2025, with nonfarm employment increasing by 50,000 jobs, according to data released by the Bureau of Labor Statistics. Total nonfarm employment reached 159,526,000, up from 159,476,000 in November, marking a slight acceleration after several months of uneven gains. Over the prior six months—from July to December 2025—employment fluctuated between 159.4 million and 159.6 million, indicating a stabilization phase following earlier volatility. The December gain suggests some resilience in hiring despite ongoing economic headwinds, including elevated interest rates and softer demand in certain sectors.
Looking at sector-specific trends, retail trade employment held steady at 15,539,000 in December, reflecting continued consumer engagement despite inflationary pressures. This sector has remained relatively stable over recent months, serving as a key support for overall employment. While not all sectors showed robust expansion, the persistence of hiring in consumer-facing industries signals underlying strength in domestic demand. However, the modest monthly gain in total nonfarm payrolls underscores that broader labor market momentum remains cautious, with employers likely adopting a wait-and-see approach amid economic uncertainty.
The pattern of employment changes over the second half of 2025 reveals a lack of consistent momentum, with monthly swings ranging from losses to moderate gains. The 50,000-job increase in December is below the pre-pandemic average but aligns with expectations for a cooling yet intact labor market. Labor force participation and wage growth metrics, though not included in this release, will be critical in assessing whether this trend reflects structural adjustment or temporary softness. Overall, the data suggest the labor market is transitioning toward a more balanced state, avoiding sharp contractions while signaling a slowdown in rapid expansion. Policymakers may view these figures as evidence of a gradual normalization, supporting a cautious stance on future monetary policy adjustments.