The U.S. labor market delivered mixed signals in December, improving by one measure while underscoring a broader slowdown.
Employers added 50,000 jobs, according to the Bureau of Labor Statistics, falling short of the 73,000 economists had expected and slightly below November’s downwardly revised 56,000 gain.
The unemployment rate edged down to 4.4 percent from a revised 4.5 percent in November, offering a modest bright spot.
The dip marked the first decline in unemployment since June, interrupting a steady upward drift. Even so, the rate remains elevated compared with the 4 percent level seen at the start of the year and signals a labor market that has lost some of its earlier momentum.
Through April of last year, job growth averaged a robust 147,000 per month. Since then, hiring has cooled notably.
Policy has been a key headwind. President Donald Trump’s sweeping tariffs have weighed on business confidence and investment, while a tighter immigration stance has shrunk the available labor pool, constraining hiring even as demand persists in some sectors.
Adding to the softness, the BLS revised payroll gains for October and November down by a combined 76,000 jobs, a period also disrupted by a record-long government shutdown.
For the Federal Reserve, the report complicates the picture.
Officials have already cut interest rates by three-quarters of a percentage point since September to cushion the slowdown and avert a surge in layoffs. The lower-than-expected unemployment rate may temper fears of an imminent labor-market breakdown and strengthen the case for holding rates steady at the January meeting.
The data for December suggest a job market that is bending, not breaking, and still searching for firmer footing.
