US Economy Adds Modest 50K Jobs in December as Unemployment Dips to 4.4%

December Jobs Report Shows Cooling Labor Market

The US economy added **50,000 jobs** in December, falling short of the 60,000 forecast and below November's revised 56,000 figure. Sectors like food services added 27,000 jobs, healthcare 21,000, and social assistance 17,000, while retail lost 25,000 positions.[2]

Unemployment dropped to **4.4%** from 4.5%, with employment rising by 232,000 to 163.99 million. Revisions cut October and November totals by 76,000, bringing yearly payroll gains to 584,000, averaging 49,000 monthly.[2]

Consumer Sentiment Rises Amid Persistent Inflation Fears

University of Michigan's January consumer sentiment climbed to **54.0**, beating forecasts despite lingering 25% below January 2025 levels. Year-ahead inflation expectations held at **4.2%**, a near one-year low, while five-year outlook rose to 3.4%.[2]

Lower-income groups drove the sentiment gains, though price and labor market concerns persist. This data arrives as markets eye upcoming December CPI release.[2][5]

Markets Rally on Softer Jobs Data

Equities surged with US indices hitting records following the jobs report. Europe rallied on miners and chips, while Asia steadied amid China inflation data.[2]

• S&P 500 and Dow saw modest December gains after a strong 2025, up 15-21% yearly.
• Nasdaq dipped slightly in December but benefited from overall resilience.

Q3 2025 GDP grew at 4.3% annualized, powered by consumer spending.[6]

Trump Administration Shifts Focus to Private Sector Growth

Job Creators Network CEO **Alfred Ortiz** highlighted optimism for 2026, noting nearly 4% holiday spending growth versus last year. He credited the Trump administration's pivot from government to **private sector jobs**, cutting almost 300,000 government positions.[4]

Ortiz described the move as trimming bureaucracy for a healthier environment, though small businesses face credit access issues. No further Fed rate cuts expected before Chair Jerome Powell's departure.[4]

Tensions Rise Over Fed Policy and Powell

Criticism mounts against Fed Chair Powell amid Trump team frustrations over economic messaging. Sources note distraction from tax cuts and growth potential due to Fed drama.[5]

Trump heads to Detroit for an economy speech post-CPI data release, emphasizing affordability after November's 2.7% figure. Visa revocations hit a record 100,000 since Trump's return.[5]

Trade Developments with Taiwan Advance

The US and Taiwan near a trade deal lowering tariffs to **15%** on Taiwan, with commitments for five more semiconductor plants in Arizona by TSMC. This counters broader tariff risks from 2025's Liberation Day announcement.[1][5]

Outlook Points to Resilience and Rate Cuts

Goldman Sachs forecasts robust 2026 growth from tax cuts, wages, and AI productivity, with core PCE inflation at **2.1%** and two Fed cuts in June and September. Unemployment may stabilize at 4.5%, risking jobless growth.[3]

Pro-growth fiscal policy, healthy balance sheets, and consumer spending underpin resilience, with tax rebates boosting demand.[1]