Total nonfarm payroll employment increased (+50,000) according to the U.S. Bureau of Labor Statistics. The unemployment rate, at 4.4%, edged down from November’s revised rate of 4.5%. Employment rose in food services and drinking places, health care and social assistance. Retail trade lost jobs.
In December, food services and drinking places continued to trend up in December (+27,000). Food services and drinking places added an average of 12,000 jobs per month in 2025, similar to the average increase of 11,000 jobs per month in 2024.
Health care employment continued its upward trend in December (+21,000), with a gain of 16,000 jobs in hospitals. Health care employment rose by an average of 34,000 per month in 2025, less than the average monthly gain of 56,000 in 2024.
Federal government employment was little changed in December (+2,000). Since reaching a peak in January, federal government employment is down by 277,000, or 9.2%.
Retail trade lost 25,000 jobs in December. Over the month, employment declined in warehouse clubs, supercenters, and other general merchandise retailers (-19,000) and in food and beverage retailers (-9,000). Electronics and appliance retailers added 5,000 jobs. Retail trade employment showed little net change in both 2024 and 2025.
Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3%, to $37.02. Over the past 12 months, average hourly earnings have increased by 3.8%. In December, average hourly earnings of private-sector production and nonsupervisory employees, at $31.76, changed little (+3 cents).
The change in total nonfarm payroll employment for October was revised down by 68,000, from -105,000 to -173,000, and the change for November was revised down by 8,000, from +64,000 to +56,000. With these revisions, employment in October and November combined is 76,000 lower than previously reported.
Read the BLS release.
