US non-farm payrolls miss estimates as wage inflation picks up

9th Jan 2026 09:35

(Sharecast News) - The US economy added fewer than expected jobs in December, according to a closely watched employment report out from the Bureau of Labor Statistics on Friday, though the jobless rate still fell more than predicted.

Non-farm payrolls rose by 50,000 last month, less than the 60,000 additions expected by analysts. December's figures were lower than a 56,000 gain in November, which was revised down from the initial estimate of 64,000.

December's data was the first jobs report unaffected by October's record government shutdown, which distorted figures and delayed dozens of federal statistical releases.

Despite an increase in payrolls, job gains in November were still around 900,000 lower than they were a year earlier, the Labor Department said, with both hiring and layoffs at relatively low levels.

Nevertheless, the unemployment rate reduced to 4.4% in December, the BLS said, down from a four-year high of 4.6% the month before which was blamed largely on the shutdown.

At the same time, however, the labor force participation rate fell to 62.4% from 62.5%.

Meanwhile, wage inflation accelerated more than expected, with average hourly earnings rising at a year-on-year rate of 3.8% in December, up from an upwardly revised 3.6% in November (initial estimate: 3.5%) and ahead of the 3.6% consensus forecast.