December 2025 Market Trends Report
December closed the year with another languid jobs report. The Bureau of Labor Statistics (BLS) reported that employers added 50,000 jobs, hitting just above the 2025 monthly average of roughly 49,000 jobs. This figure pales in comparison to the previous year’s average of 168,000 jobs per month, making 2025 the weakest year for BLS jobs reports since the pandemic.
Last month repeated a trend that characterized 2025: acutely concentrated growthwithin healthcare, a positive for the industry that also highlights weaker performance across the broader economy.Many sectors, including construction, manufacturing, business and professional services, experienced notable losses.
This is a tough market for job seekers, who are submitting more and more applications to secure employment, while employers are reluctant to let go of their existing workforces.
Unemployment remained low in 2025, reaching 4.4% in December. However, if this low-hiring, low-firing pattern prolongs, it may become increasingly difficult for the economy to maintain its momentum.
Jobs Market Overview: December 2025
4.4%
Overall unemployment rate
Unemployment remained low through 2025 and decreased from 4.6% in November
50k
Jobs added
Hiring increased lightly, continuing the 2025 trend of modest job growth
62.4%
Labor force participation rate (LFPR)
The LFPR slightly increased from 62.5% in November
Industry Employment Trends
OVERALL ECONOMY
+50k
Monthly job change
(+584k year over year)
| Industry | Monthly Job Change | YOY Difference |
| Manufacturing | -8k | -68k |
| Automotive | -0.7k | -27.6k |
| Warehousing & Storage | -7.2k | -52.5k |
| Architectural & Engineering | +2.3k | +35.9k |
| Construction | -11k | +14k |
Source: Bureau of Labor Statistics' Economic News Release
Manufacturing Outlook
Manufacturers faced a challenging landscape through 2025 marked by volatile tariffs, rising wage demand and higher administrative costs. Hiring slowed, and by the end of the year, many companies moved from stockpiling inventory to reducing their supplies following the holiday season.
If order volumes and demand persist alongside these lowered inventories, we're expecting renewed growth within manufacturing. This could introduce new challenges as companies compete to attract and retain skilled workers in 2026.
Stanley Johnson
Director of Business Development — Manufacturing & Logistics
Sector-by-Sector News: December 2025
Manufacturing Jobs Report
Manufacturing Employment Change: +2.5k MOM, -68k YOY
December 2025 Manufacturing PMI: 47.9%
*A PMI reading below 50% suggests economic activity is contracting.
Goods-producing industries, including manufacturing, have experienced significant job losses. Employers cut 8,000 in December alone, contributing to a decline of 68,000 jobs year over year.
The Institute for Supply Management (ISM’s) manufacturing PMI continues to contract, and the Employment Index has contracted 36 out of the last 38 months.
While demand was steady in Q3, supported by growth in new orders and new export orders, it tapered off in Q4. Still, 2026 is poised to bring a rising need for skilled trades professionals as more organizations embrace smart manufacturing, aimed at boosting efficiency, quality and stability.
The only manufacturing industries that reported growth in December are:
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Electrical Equipment, Appliances & Components
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Computer & Electronic Products
Manufacturing industries that contracted in December include:
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Apparel, Leather & Allied Products; Wood Products
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Textile Mills
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Paper Products
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Chemical Products
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Printing & Related Support Activities
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Nonmetallic Mineral Products
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Petroleum & Coal Products
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Primary Metals
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Miscellaneous Manufacturing
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Plastics & Rubber Products
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Fabricated Metal Products
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Machinery
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Food, Beverage & Tobacco Products
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Transportation Equipment
Construction Jobs Report
Construction Employment Change: -11K MOM, +14k YOY
Construction employment declined month over month in December, and employers added only 14,000 jobs year over year. This marks the “worst 12-month performance since 2011”, according to Associated Builders and Contractors’ Chief Economist Anirban Basu.
Losses dominated the residential sectors, which shed 41,400 jobs year over year and 3,100 month over month. Non-residential hiring continued to chug ahead, with 55,600 jobs added year over year, yet the sector lost 7,800 jobs month over month.
The pervasive decline across construction is due to recent curbs in project demand and spending. This signals a difficult start to 2026 for the industry.
Alternatively, in response to the Construction Confidence Index, contractors are optimistic about hiring over the next six months. This is likely due to anticipated lower borrowing costs, which could increase profitability and accelerate investments in new building projects.
Month-over-month job changes:
Nonresidential:
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Building: -4.8k jobs
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Heavy and civil engineering: +2.3k jobs
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Specialty trade contractors: -8.9k jobs
Residential:
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Building: -4.2k jobs
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Specialty trade contractors: +1.1k jobs
Warehousing & Storage Jobs Report
Warehousing & Storage Employment Change:+7.2k MOM, -52.5 YOY
December Logistics Managers' Index: 54.2*
*A reading above 50 indicates logistics are expanding.
Holiday hiring brought employment gains in December (+7,200 jobs from November) alongside strong consumer spending, much of which was likely subsidized by loans. However, compared to the prior year, seasonal hiring was low, with 52,500 less jobs added year over year.
Logistics activity expanded in December, as reported by the Logistics Managers’ Index (LMI), but the pace of growth slowed, falling 1.5 points from November’s reading alongside conflicting indicators within the index and the broader economy.
Inventory and warehousing markets experienced sharp contractions after maintaining unusually high inventory levels throughout 2025 to offset costs from tariffs. Holiday buying helped warehouses offload their supply, yet inventory costs are higher than the previous year and 27.9 points higher than the Inventory Level index. Additionally, while consumer spending was up, sentiment was down.
When asked to predict future LMI growth, respondents were optimistic, a sentiment that could be realized if consumer demand remains strong despite elevated costs.