US Economy added 71k jobs in line with expectations

• Revelio Public Labor Statistics (RPLS) shows the economy added approximately 71k jobs in December. The employment gains were driven by the Education and Health Services sector, which continues to add jobs every month. Meanwhile, the Retail sector lost about 11k jobs.

• Within these sectors, the employers adding the largest number of jobs were the Universities of California and Texas in Education and Health Services, PwC and KPMG in Professional Services, and JP Morgan Chase and Fidelity in Financial Services. Employers with the largest declines were Target and Walmart in Retail as well as Starbucks and Inspire Brands (Dunkin’, Baskin-Robbins, etc.) in Leisure and Hospitality.

• We are seeing a reversal in the trend for hiring this month, with hiring finally up month-over-month after a long period of decline. Job postings saw a month-over-month decline of 1.4%, which still bodes ill for labor demand moving into 2026.

• Salaries from new job postings ticked down in December, showing a -0.5% month-over-month increase, driven by salary declines in Education & Health as well as Utilities.

Employment

Revelio Labs Public Labor Statistics shows that the US economy added approximately 71k jobs in December. November employment growth was revised from -9k jobs to +32k. Our estimates of employment in December point to a strong holiday season. The sectors with the biggest increases and decreases in employment point to the further bifurcation of the labor market, with job creation among white-collar roles remaining relatively strong.

The increase in employment was driven by Health and Education, Information, and Professional and Business Services. Retail Trade and Leisure and Hospitality saw the largest declines in employment, similar to November.

Within these sectors, the employers adding the largest number of jobs were the Universities of California and Texas in Education and Health Services, PwC and KPMG in Professional Services, and JP Morgan Chase and Fidelity in Financial Services. Employers with the largest declines were Target and Walmart in Retail as well as Starbucks and Inspire Brands (Dunkin’, Baskin-Robbins, etc.) in Leisure and Hospitality.

With the exception of the uptick in Construction, this month’s employment numbers continue the stark K-shaped trends from last month, where more white-collar industries see relative strength, while blue-collar jobs are in stark decline.

Layoff notices

We also observe a decline in the number of employees notified with layoffs as part of WARN layoff notices. Layoff notices decreased by ~38.6% (from 306 in November to 118 in December). The number of employees notified with layoffs decreased from 31.6k employees in November to 13.2k in December, a 58% month-over-month decline.

Hiring & attrition

Hiring is finally showing signs of improvement after a years-long slowdown. The annualized hiring rate ticked up from 24.2% in November to 25.0% in December, giving job seekers some additional hope going into the new year. The increase in hiring was led by the Information and Financial Activities sectors.

Attrition also ticked up along with hiring, but not as much, leading to the relatively strong job gains posted in December. Overall, the increase in hiring and attrition will be a welcome sign for a labor market that was swiftly losing its dynamism.

Job postings

Job postings data continues to show weakening demand, which bodes ill for job creation moving into the new year. Active job postings ticked down 1.4% from November to December, with almost all industries showing decreases month over month and year over year. The biggest declines in labor demand in December compared to the year prior were found in Public Administration (-35.5%), Other Services (-32%), and Professional and Business Services (-30.2%).

Salaries from new job openings

Salaries from new job postings ticked down slightly in December, falling -0.5% from November 2025. Sectors driving the decrease are Education and Health, Agriculture, and Leisure and Hospitality. Salaries increased for Transportation and Warehousing, as well as in the Financial Sector.

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