"The data suggests a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump's shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs."
"Still, economists were encouraged by the lower unemployment rate, which had risen in the previous four straight reports. Some Federal Reserve officials are concerned that inflation hasn't improved since 2024 and remains above their target of 2% annual growth. They support keeping rates where they are to combat inflation. Others, however, have grown worried that hiring has nearly ground to a halt and have supported lowering borrowing costs to spur spending and growth."
"Sluggish December hiring concluded a year of weak employment gains that have frustrated job seekers even though layoffs and unemployment remained low. Employers added just 50,000 jobs last month, nearly unchanged from a downwardly revised figure of 56,000 in November, the Labor Department said Friday. The unemployment rate slipped to 4.4%, its first decline since June, from 4.5% in November, a figure also revised lower."
Employers added just 50,000 jobs in December, nearly unchanged from a revised 56,000 in November, while the unemployment rate slipped to 4.4% from 4.5%. Businesses have shown reluctance to add workers despite stronger economic growth because many hired aggressively after the pandemic and no longer need more staff. Shifting tariff policies, elevated inflation, and the spread of artificial intelligence have increased uncertainty and tempered hiring. Federal Reserve officials are split between holding rates to combat inflation and lowering rates to stimulate hiring. Prior months' job figures were revised lower as more survey responses were received.
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