US non-farm payrolls rose by 50k in December, undershooting expectations of 66k. Downward revisions to prior months added to the softer tone, with October employment revised lower by -68k to -173k, and November trimmed by -8k to 56k.
However, the unemployment rate fell unexpectedly from 4.6% to 4.4%, beating expectations and suggesting labor market conditions remain tight despite slower job growth. Average hourly earnings rose 0.3% mom, in line with forecasts, keeping annual wage growth elevated at 3.8% .
Payroll growth in 2025 totaled just 584k, sharply lower than the 2.0 million increase in 2024.
