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The U.S. job market is ending 2025 on shakier ground than many expected. After several years of booming hiring and near-record low unemployment in the wake of the pandemic, the pace of growth has cooled noticeably. Payroll gains have slowed to a crawl, jobless claims have swung higher before easing again, and government revisions have wiped out a significant share of earlier job reports. Recent figures from the Bureau of Labor Statistics show only modest increases in nonfarm payrolls, while the unemployment rate has inched up into the low 4% range.
Why that matters: weaker hiring generally means more competition