Yardeni Research president Ed Yardeni discusses the economic factors heading into 2026 in Making Money.
The U.S. economy saw modest job growth in December as employers added jobs at a steady pace amid economic uncertainty.
The Labor Office reported this to employers on Friday 50,000 jobs added in December. That figure was cooler than expectations from economists surveyed by LSEG, who predicted 60,000 jobs would be added this month.
The unemployment rate fell slightly to 4.4% in December. This outcome was lower than economists’ expectations of an interest rate of 4.5%. The drop comes after the unemployment rate was initially reported to have risen to 4.6% in November, the highest level since September 2021, although it was revised to 4.5% after the BLS made a routine population adjustment for the latest report.
Revisions have been made to the previous two months’ wages figures, with the October report revised downwards by 68,000, from a loss of 105,000 to a loss of 173,000 jobs; while the November report was revised down by 8,000, from a gain of 64,000 to 56,000.
All told, employment in October and November was 76,000 jobs lower than previously reported.
Private contractors added 37,000 jobs in December, below the LSEG estimate of 64,000 jobs.
Government payrolls grew by 13,000 jobs in December, with gains in local government (+18,000) and federal government (+2,000) partially offset by a decline in state government employment (-7,000).
The manufacturing sector lost 8,000 jobs in December, which was a steeper decline than the 5,000 job loss estimated by LSEG economists.
Food services and beverage services added 27,000 jobs in December, up from an average of 12,000 additional jobs per month by 2025.
Healthcare companies continued to add jobs in December, with a gain of 21,000 jobs in the month, mainly driven by hospital hiring (+16,000). In 2025, healthcare added an average of 34,000 jobs per month, which is lower than the average of 56,000 in 2024.
Social assistance companies added 17,000 jobs in December, mainly in individual and family services (+13,000).
The retail sector lost 25,000 jobs in December, with declines at warehouse clubs, supercenters and general merchandise retailers (-19,000) and food and beverage retailers (-9,000) partially offset by gains at electronics and appliance retailers (+5,000).
This is a development story. Check back later for updates.
