U.S. Added Just 50,000 Jobs In December, Entertainment Industry Employment Falls

• Entertainment sector lost 2,100 jobs in movies and music (falling to 394,300 total), while broadcast and content provider jobs dropped by 100 positions to 334,000
• Job gains concentrated in food services, healthcare, and social assistance, while retail trade shed 25,000 positions
• Economist described 2025 as the 'worst year for hiring outside of a recession since 2003' with almost no hiring since April, calling it a 'hiring recession' amid a 'jobless boom'

Market Summary: December Jobs Report Shows Hiring Slowdown

Key Employment Figures:

The U.S. economy added only 50,000 jobs in December 2025, significantly below typical monthly gains and confirming a year-end hiring slowdown. The unemployment rate declined slightly to 4.4%.

Sector Performance:

• Entertainment industry: Lost 2,100 jobs, declining to 394,300 positions in movies and music
• Broadcasting/content providers: Dropped approximately 100 positions to 334,000
• Retail trade: Lost 25,000 jobs
• Growth sectors: Food services, drinking establishments, healthcare, and social assistance were the primary sources of job gains

Economic Context:

Despite weak hiring, the economy demonstrated robust growth with Q3 GDP expanding at a 4.3% annualized rate, exceeding expectations. This disconnect has led analysts to characterize the situation as a "jobless boom."

Market Implications:

Navy Federal's chief economist Heather Long described 2025 as experiencing a "hiring recession" with minimal job creation outside healthcare and hospitality sectors. She noted 2025 was "the worst year for hiring outside of a recession since 2003," with virtually no hiring activity since April.

Analysis:

The data reveals a concerning divergence between economic growth and employment expansion. The continued weakness in entertainment sector employment reflects broader challenges in discretionary spending-dependent industries. The concentration of job gains in healthcare and hospitality, coupled with retail losses, suggests structural shifts in the labor market that may impact consumer spending patterns and corporate earnings in affected sectors.

This employment weakness could influence Federal Reserve policy decisions and market expectations for 2026.