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Strategist: December may be a turning point for the US labor market
Summary: According to sources, Brian Jacobson, Chief Economic Strategist at Annex Wealth Management, commented on the US non-farm payrolls: Apart from the healthcare industry, there is a variety of new job types being created. However, the reduction in manufacturing workweek hours is a 'warning signal,' which usually serves as a leading indicator. Overall, December may mark ...
According to sources, Brian Jacobson, Chief Economic Strategist at Annex Wealth Management, commented on the US non-farm payrolls: Apart from the healthcare industry, there is a variety of new job types being created. However, the reduction in manufacturing workweek hours is a 'warning signal,' which usually serves as a leading indicator. Overall, December may mark a turning point for the labor market, with some signs of improvement emerging, but this assessment remains highly uncertain.
The Wall Street Journal noted that the US added 50,000 non-farm jobs in December, below the market's expectation of 60,000 and weaker than the revised 56,000 jobs added in November; the unemployment rate dropped to 4.4%. The report on Friday marked the end of 2025, a year where labor demand significantly slowed down, leading to companies controlling hiring. In 2025, the US saw weak job creation, cooling wage growth, and rising unemployment. Most of the jobs created in 2025 were concentrated in two industries: education and healthcare. 'We see job growth slowing down and becoming more erratic—but the labor market has not fallen off a cliff,' said Nela Richardson, Chief Economist at Automatic Data Processing. Looking ahead to 2026, economists expect measures like tax cuts to support hiring in the coming year. However, the economy will still face multiple uncertainties, including geopolitical turmoil and the question of whether artificial intelligence will erode the demand for certain types of workers, such as those just starting their careers.
