Usman Salis
⬤ The U.S. labor market hit a wall in 2025, posting its worst job growth outside of a recession since 2003. The economy added just 50,000 jobs in December, capping off a year that saw only 584,000 total new positions. Historical data shows 2025 stands out as an unusually weak year for employment compared to most years since 2000.
⬤ Here's what makes this year particularly striking: nearly 85% of all jobs created in 2025 happened by April. Hiring basically stalled for the rest of the year—a front-loaded pattern that looks nothing like the steady growth seen during stronger economic periods. The numbers put 2025 among the lowest annual job growth figures ever recorded outside recession years.
⬤ The unemployment picture darkened too. The jobless rate climbed from 4.0% in January to 4.4% by December, reflecting the hiring slowdown. But there's a silver lining: wages still grew 3.8% for the year, outpacing the roughly 3% inflation rate. Workers' paychecks kept beating price increases, even as job opportunities dried up.
Usman Salis
