The U.S. unemployment rate held steady at 4.4% in December 2025, according to seasonally adjusted data released Friday. This marks a slight improvement from the previous month’s reading of 4.5%, reversing a modest uptick seen in November and stabilizing after six months of fluctuation between 4.3% and 4.5%. Over the second half of 2025, the labor market demonstrated resilience, with unemployment remaining within a narrow range despite ongoing economic uncertainties, including inflationary pressures and shifting monetary policy.
From July to December, rates were recorded at 4.3%, 4.3%, 4.4%, 4.5%, and 4.4% respectively, indicating a broadly stable job market that has neither accelerated strongly nor shown signs of deterioration.
Significant disparities persist across age groups, highlighting structural dynamics within the labor force. The unemployment rate for Americans aged 16 to 24 stood at 10.4% in December, more than double the national average and reflecting challenges younger workers face in securing stable employment, particularly in entry-level and part-time sectors. In contrast, the unemployment rate for those aged 25 and above remained low at 3.5%, underscoring the relative stability enjoyed by prime-age and older workers, who tend to have higher levels of education, experience, and job attachment.
This divergence suggests that while the overall labor market remains tight, younger individuals continue to encounter barriers to full labor market integration, possibly due to mismatches in skills, reduced hiring in youth-intensive industries, or seasonal employment patterns.
Total unemployment in December amounted to approximately 7.5 million people, down slightly from the prior month’s elevated figure. The stabilization of the headline rate at 4.4% signals that job creation is keeping pace with labor force growth, though momentum may be moderating compared to earlier in the year. Economists note that sustained rates near 4.5% are consistent with a healthy, if not fully robust, labor market, particularly as wage growth and job openings have shown signs of gradual normalization.
With core inflation metrics continuing to trend downward, the Federal Reserve is expected to maintain its current interest rate policy through early 2026, allowing the labor market room to adjust without aggressive intervention.