U.S. economy added more than 500,000 jobs in 2025

In 2025, the economy added 584,000 jobs. Heather Long, chief economist at Navy Federal Credit Union, said it was a difficult year for job seekers.

"2025 was the worst year for hiring outside of a recession since 2003," Long wrote in a post on social media. 

The unemployment rate in December remained steady at 4.4%. 

In December, health care employment trended upward with 21,000 added jobs. In the year as a whole, health care jobs increased by an average monthly rate of 34,000. This monthly gain is less than in 2024, where the average gain was 56,000. 

Even still, health care and hospitality jobs drove hiring for the year. Employment in food services and drinking places increased by 27,000 in December. 

Social assistance added 17,000, with most gains coming from individual and family services at 13,000. 

"The U.S. is experiencing a jobless boom," Long said. "Growth is strong, but there is a 'hiring recession' with almost no hiring outside of healthcare and hospitality."

In the year overall, health care added 405,000 jobs and social assistance added 308,000 jobs. 

Retail trade lost 25,000 jobs in December, driven by declines in warehouse clubs and general merchandise retailers. 

Average hourly earnings rose by 12 cents in December to $37.02.

Jed Kolko, senior fellow at the Peterson Institute, said immigration policy has slowed workforce growth which has contributed to less job growth in reports. 

"People are working," Kolko wrote on social media. "But the workforce is shrinking because of immigration policy."