The United States witnessed a significant deceleration in job creation during the first year of President Donald Trump's return to office, according to official data. The latest figures from the US Labor Department, released on Friday, reveal a subdued employment landscape that highlights growing economic strains.
Job Growth Hits a Multi-Year Low
The preliminary report showed that the American economy added approximately 584,000 jobs over the past 12 months, culminating in December 2025. This marks the slowest annual pace of job growth since 2020. The tally fell well below the nation's longer-term historical average, presenting a stark contrast to the performance in the previous year. Under President Joe Biden in 2024, employers had created more than 2 million new jobs.
Economists caution that these initial numbers for both 2024 and 2025 are likely to be revised down substantially next month when more complete data is incorporated into the estimates. The December report and the overall annual data underscore persistent voter anxieties about the economic direction.
Sectoral Split: Healthcare Booms, Manufacturing Busts
The job gains in December, and indeed for the entirety of 2025, were overwhelmingly concentrated in a single sector. Virtually all net job creation occurred in the healthcare industry. Other critical sectors, such as retail, remained largely stagnant, showing little to no growth.
In a notable setback, the manufacturing sector—a major policy focus for the Trump administration—ended 2025 on a weak note. On a seasonally adjusted basis, the manufacturing industry lost about 68,000 jobs over the last 12 months. This decline signals challenges in an area often highlighted for revival and underscores the uneven nature of the current economic recovery.
Implications for the US Economic Landscape
The dramatic slowdown in hiring suggests that policy agendas may be exacerbating existing pressures on American workers and employers. The lopsided growth, reliant almost entirely on healthcare, points to a lack of broad-based economic strength. The loss in manufacturing jobs will likely fuel further debate on industrial policy and trade.
This jobs report paints a picture of an economy in a delicate transition, with the robust hiring of the previous years giving way to a much cooler phase. The final revisions next month will provide a clearer picture, but the preliminary data indicates a labour market facing distinct headwinds as the new administration completes its first year back in power.
