The latest Bureau of Labor Statistics report shows the U.S. job market cooled notably in 2025, with slower hiring, rising unemployment, and several months of job losses—the first since 2020. Even so, it’s important to maintain perspective, as other parts of the economy continue to show resilience.
Key points:
– Hiring slowed sharply: 2025 saw 584,000 jobs added, down from 2.0 million in 2024. Average monthly job growth fell to 49,000, and the fourth quarter averaged a 22,000 job loss following a large downward revision.
– Unemployment rose modestly: The rate ended the year at 4.4%, peaking at 4.5% in November—still low by historical standards.
– Data revisions signal weakness: The BLS estimates 911,000 fewer jobs than previously reported from March 2024 to March 2025.
– Job openings declined: Openings fell to 7.1 million, leaving fewer openings than unemployed workers for the first time in years.
The chart below highlights these trends. While a softer labor market may create near-term uncertainty, long-term investors should remember that economic cycles are normal and markets have historically recovered over time.
