The U.S. economy added 50,000 jobs in December, offering modest improvement after weak hiring earlier in the fall, according to the Labor Department. The unemployment rate fell to 4.4 percent, down from recent highs, even as job growth missed Wall Street expectations of 73,000 new positions, according to Dow Jones.
Hiring gains were led by food services, health care, and social assistance, while retail and manufacturing posted losses. Average hourly earnings rose to $37.02, up 3.8 percent from a year earlier, a sign wage pressures remain elevated.
BREAKING: The US economy adds 50,000 jobs in December, below expectations of 66,000.
— The Kobeissi Letter (@KobeissiLetter) January 9, 2026
The unemployment rate fell to 4.4%, below expectations of 4.5%.
November's unemployment rate was also revised down from 4.6% to 4.5%.
The Fed is set to pause interest rate cuts.
The data comes as the Federal Reserve weighs potential interest rate cuts. JPMorgan economist Mike Feroli said a January rate cut remains uncertain if the job market tightens again. Other indicators were mixed.
Layoff announcements declined in December, and weekly jobless claims came in lower than expected, suggesting the labor market is cooling but not breaking.
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