On Wednesday, the government reported that U.S. employers added a surprisingly strong 130,000 jobs in January and the unemployment rate fell to a still-low 4.3% from 4.4%. However, government revisions cut 2024-2025 U.S. payrolls by hundreds of thousands. That reduced the number of jobs created last year to just 181,000, a third of the previously reported 584,000 and the weakest since the pandemic year of 2020.
A letter writer takes issue with the GOP Chairman of Santa Cruz's lament that Gavin Newsom and California Democrats have sabotaged state legislation that would have eliminated taxes on tips for low-wage heroes like servers and bartenders. Her complaint is that Republicans blocked legislative efforts to raise California's minimum wage, implying that if Republicans really cared about workers, they would support a higher minimum wage.
Friday's December employment report - the last for 2025 - reinforced the biggest theme in the job market last year: It's a hard time to be looking for work, unless you're looking at a few select corners of the economy. "The job market is ending the year with a fizzle rather than a bang," Daniel Zhao, the chief economist at Glassdoor, said. In total, the US added just 584,000 jobs in 2025, a big drop from the past few years.
U.S. employers added a surprisingly strong 130,000 jobs last month, but government revisions cut 2024-2025 U.S. payrolls by hundreds of thousands. The unemployment rate fell to 4.3%, the Labor Department said Wednesday. The report included major revisions that reduced the number of jobs created last year to just 181,000, a third the previously reported 584,000 and the weakest since the pandemic year of 2020. The job market has been sluggish for months even though the economy is registering solid growth.
The workforce continues to change as more employees work from home or switch jobs to move beyond living paycheck to paycheck. However, some employees may also have changed jobs out of necessity as companies lay off workers in an attempt to trim costs. Millions have faced layoffs in the past year, and 2026 is off to a similar start, with tech companies starting to lay off significant portions of their workforce.