Home / Business and Economy / US Jobs Slowdown: Hiring Plummets, Layoffs Lowest Since July
US Jobs Slowdown: Hiring Plummets, Layoffs Lowest Since July
9 Jan
Summary
- December's job gains were estimated at 70,000, with unemployment at 4.5%.
- Consumer confidence in finding a new job within three months hit a record low.
- December saw the lowest monthly layoff announcements since July 2024.
Economists and workers are closely examining the US job market, which has shown a weak hiring rate and minimal job gains. The final employment figures for 2025 are expected to reveal an unemployment rate of 4.5% with an estimated 70,000 jobs added in December. This cooling labor market has also impacted consumer sentiment, with the perceived probability of finding a new job within three months hitting a historic low in December.
Despite the concerns about slow hiring, recent data offers some reassurance. Layoff announcements in December reached their lowest monthly total since July 2024, according to Challenger, Gray & Christmas. Private payroll data from ADP indicated a gain of 41,000 new positions for the month. Furthermore, estimates based on Bank of America Institute's internal data suggest year-over-year payroll growth recovered in December.
These mixed signals paint a picture of a "no-hire, no-fire" economy. While job creation remains sluggish, the decrease in layoffs may suggest that the most severe phase of the economic slowdown is potentially behind us. Upcoming federal government releases will provide further clarity on the state of employment as the new year begins.
