Strategist: December may be a turning point for the US labor market

CoinWorld News: Annex Wealth Management’s Chief Economic Strategist Brian Jacobsen commented on the US non-farm payrolls: aside from the healthcare industry, the types of new jobs are diverse. However, the shorter workweek in manufacturing is a “warning sign,” which is often a leading indicator. Overall, December may mark a turning point in the labor market, with some signs of improvement beginning to appear, but this assessment remains highly uncertain. The Wall Street Journal noted that US non-farm employment increased by 50,000 in December, below the market expectation of 60,000 and weaker than the revised 56,000 jobs added in November; the unemployment rate fell to 4.4%. The Friday report marked the end of 2025, a year in which labor demand significantly slowed, and companies controlled hiring. In 2025, US job creation was weak, wage growth cooled, and unemployment rose. Most of the jobs created in 2025 were concentrated in two industries: education and healthcare services. “We see employment growth slowing and being volatile — but the labor market has not fallen off a cliff,” said Neela Richardson, Chief Economist at Automatic Data Processing. Looking ahead to 2026, economists expect measures such as tax cuts to support hiring in 2026. However, the economy will still face multiple uncertainties, including geopolitical turmoil and whether artificial intelligence will erode demand for certain types of workers (such as those just starting their careers).