U.S. employers added 50,000 jobs last month, falling short of the 55,000 consensus estimate. November payrolls were also revised lower, to 56,000 from 64,000, continuing a pattern of downward adjustments that has weighed on recent employment data. 

The unemployment rate declined to 4.4% from 4.6%, offering a counterbalance to the softer headline jobs figure. November’s unemployment rate was also revised down by one-tenth of a percentage point to 4.5%, reflecting the annual update to the Labor Department’s seasonal adjustment process. 

Still, revisions to earlier months underscore the extent of the slowdown. October payrolls were cut by 68,000 jobs, largely reflecting federal employees rolling off payrolls, and now show a net loss of 173,000 jobs. 

For policymakers, the decline in the unemployment rate may help ease concerns that the labor market is on the verge of cracking. At the same time, the report adds to evidence that hiring has cooled materially. After delivering three quarter-point rate cuts in the second half of 2025, the Federal Reserve has signaled it can afford to move cautiously as it weighs a softening labor market against still-elevated inflation. The central bank’s next policy meeting is scheduled for later this month. 

Markets, at least initially, appear to be taking the report in stride. Equities edged higher, and expectations for additional rate cuts showed little change.