Strategist: December could be a turning point for the US labor market.

Brian Jacobson, chief economic strategist at Annex Wealth Management, commented on the U.S. non-farm payrolls: Aside from healthcare, the types of new jobs were diverse. However, the shortened workweek in manufacturing is a "warning sign," which is usually a leading indicator. Overall, December may mark a turning point in the labor market, with some signs of improvement emerging, but this assessment remains highly uncertain. The Wall Street Journal commented that U.S. non-farm payrolls increased by 50,000 in December, lower than the market expectation of 60,000 and weaker than the revised 56,000 increase in November; the unemployment rate fell to 4.4%. Friday's report concluded 2025, a year of significantly slowing labor demand and companies controlling hiring. In 2025, U.S. job creation is expected to be weak, wage growth to cool, and the unemployment rate to rise. Most of the jobs created in 2025 are concentrated in two sectors: education and healthcare. "We are seeing slower and more volatile job growth—but the labor market hasn't fallen off a cliff," said Nera Richardson, chief economist at Automatic Data Processing. Looking ahead to 2026, economists expect measures such as tax cuts to support hiring. However, the economy will still face several uncertainties, including geopolitical instability and whether artificial intelligence will erode demand for certain types of workers, such as those just starting their careers. (Jinshi)