In the full year of 2025, non-farm employment in the U.S. increased by only 584,000 people. From an annual perspective, this is a sharp decline compared to the 2 million jobs added in 2024, marking the weakest annual performance in 20 years, even lower than the lowest levels during the 2010-2019 expansion period. Looking closer at employment data by sector, in 2025, only the healthcare and social assistance sector added 713,000 jobs. This means that apart from healthcare and social assistance, all other private sectors in the U.S.—manufacturing, tech, finance, retail, etc.—experienced a net decrease in employment, with a total net loss of 129,000 jobs. This highlights the weakness of the labor market and aligns with what the Fed's Kashkari previously warned about regarding the risk of a sudden spike in unemployment. From this perspective, the December unemployment rate being lower than expected might have been overly polished.