WASHINGTON — The United States economy added 50,000 jobs in December, a figure that fell below expectations even as the national unemployment rate dropped to 4.4%. The Bureau of Labor Statistics released the data on January 9, 2026, signaling a slowdown in the labor market.

The 50,000 new positions fell short of economists' forecasts of 55,000 to 70,000 jobs. A drop in government jobs and slower hiring at private companies held back growth during the month.

According to the report, government officials also lowered November’s job numbers from an original estimate of 64,000 to 56,000. Experts noted that a federal government shutdown further complicated labor data during October and November, which may have influenced recent figures and revisions.

Interest Rate Outlook

Following the report, market data showed the chance of the Federal Reserve cutting interest rates in late January dropped to just 5%. The Fed’s main interest rate—which influences what people pay for loans and credit cards—currently sits at a three-year low, between 3.5% and 3.75%, after three straight cuts.

Seema Shah, chief global strategist at Principal Asset Management, noted that the surprise drop in the unemployment rate makes a January rate cut much less likely. Analysts from Goldman Sachs said the Federal Reserve will likely keep interest rates steady as the job market shows signs of stabilizing.

Federal Reserve Chair Jay Powell had already expressed caution about job data earlier in December. Before the latest figures were released, he stated that interest rates were "well positioned" and questioned the accuracy of reported monthly growth totals.

Market Performance

Despite the lower job totals, U.S. stock markets rose on January 9. The Dow Jones Industrial Average gained 171 points, and the S&P 500 increased by 0.2%. Interest rates on government bonds also saw a slight increase, with the rate for a two-year bond rising to 3.52%.

The CNN Fear and Greed Index, which measures how investors feel about the market, showed a "neutral" mood on the day of the announcement.

Analysts noted that while the unemployment rate fell from 4.5% the previous month, the overall pace of hiring remains much slower than it was earlier in the year. The market remains under pressure from job cuts and a slowdown in hiring.