In a Jan. 9 report on job growth from the Bureau of Labor Statistics (BLS), U.S. employers added 50,000 jobs in December, with the unemployment rate at 4.4%, according to the latest release.
Employment continued to trend up in food services and drinking places, healthcare and social assistance. Job losses occurred in retail trade.
The employment growth of 50,000 was down from November, but the unemployment rate of 4.4% decreased from November’s high of 4.6%. November’s jobs data was revised down from the original 64,000 to 56,000.
Realtor.com® Senior Economist Jake Krimmel noted that the payroll growth was softer than expected, reinforcing the view that hiring momentum remains weak.
“Overall, today’s messy report helps level-set expectations for 2026 for a low-hire, low-fire labor market that is still waiting for clearer signs of renewed momentum,” Krimmel said in a statement. “Looking ahead to 2026, a steadier labor market with fewer downside risks would support household confidence and first-time buyer demand, especially as housing affordability has emerged as a priority for the administration, with more creative policy proposals on the way.”
Summing up the year’s employment data, payroll employment rose by 584,000 in 2025, with an average monthly gain of 49,000. These numbers were drastically down from 2024, with an increase of 2 million jobs and an average monthly gain of 168,000.
U.S. Secretary of Labor Lori Chavez-DeRemer issued a statement, praising the year’s job growth.
“The December jobs report confirms that 2025 was a blockbuster year of solid job growth thanks to the return (of) President Trump’s America First leadership, with over 650,000 jobs added since he took office,” she said. “Wage growth is still running strong, up 4.1% in the last three months, and inflation has hit its lowest level in nearly five years.”
Lisa Sturtevant, chief economist at Bright MLS, noted that the latest report highlighted a new dynamic to the housing market—increased economic anxiety.
“When people feel uncertain about their own financial situations, they are going to be much more cautious about making big decisions, such as buying or selling a home,” shared Sturtevant.
“There is still a lot of pent-up demand in the market and it’s an open question still about what is going to win out—improved affordability or economic uncertainty.”
