US Job Growth Slows in December as Unemployment Rate Dips to 4.4%

The Bureau of Labor Statistics (BLS) reported that non-farm payrolls rose by just 50,000 in December. This figure missed the consensus forecast of 60,000 and marks a distinct deceleration in hiring.

Compounding the softness was a downward revision to the November data. The previous month's gains were cut from 64,000 to 56,000.

Despite the weak hiring, the unemployment rate improved. The headline rate fell to 4.4%, which was below the 4.5% expected by analysts. The November unemployment figure was also revised down to 4.5% from an initial reading of 4.6%.

The hiring landscape remains uneven. Employment continued to trend upward in food services, healthcare and social assistance. These defensive sectors have been the primary engine of job growth for much of the fourth quarter.

However, retail trade saw job losses. Other major industries showed little change, including manufacturing, construction and professional services. This stagnation aligns with the broader "no hiring, no firing" mode described by economists earlier this week.

The data follows Wednesday's JOLTS report, which showed job openings falling to 7.1mn against a forecast of 7.6mn.

The mixed signals, weak hiring, paired with a lower unemployment rate, resulted in a muted market response.

Yields on the benchmark 10-year US Treasury note fell 1 basis point to 4.175% as traders priced in a slightly higher probability of Federal Reserve support. S&P 500 futures remained little changed immediately following the release.

Bitcoin held steady. The asset traded flat at $90,400 as the macro data failed to provide a catalyst for a breakout in either direction.