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The US labor market entered the new year barely moving after a rough 2025 that ranked among the weakest periods for job growth since 2009. December hiring likely stayed soft, closing a year defined by hesitation instead of momentum. Economists expect about 60,000 jobs were added in the final month, a small figure that capped a year where payrolls rose roughly 670,000. That stands far below the 2 million jobs created in 2024 and shows how sharply conditions cooled. Unemployment probably edged down to 4.5% in December from a four-year high, but that dip offered little comfort. Employers largely stopped expanding payrolls after years of fighting for workers. Job openings stabilized, signaling many firms felt fully staffed. At the same time, shifting trade policies under President Donald Trump pushed companies to protect margins. Cost controls came first. New hires came later, if at all. The labor market did not crash. It simply stalled. Employers slow hiring as costs, AI, and policy risks pile up Hiring slowed across most industries as companies adjusted to a different playbook. Artificial intelligence became a bigger part of daily operations, allowing firms to raise output without adding headcount. That shift limited payroll growth even as demand stayed steady. Still, the slowdown did not trigger mass job cuts. Layoffs remained rare, keeping the labor market locked in a low-hire, low-fire pattern. Meanwhile after delivering three interest-rate cuts at the end of 2025, policymakers are expected to hold off for at least the first 3 to 4 months of this year. Officials want clearer evidence that inflation continues to cool before making further moves. Steady employment, even at low growth, gives them room to wait. But more data is coming fast.The Bureau of Labor Statistics is set to release November figures on job openings, quits, and layoffs.Those…

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Filed under: News - @ January 4, 2026 3:45 am