US job creation slowed sharply in 2025, with only 50,000 jobs added in December and an annual monthly average of 49,000, the weakest since the Covid downturn. November's unemployment rate rose to 4.6%, a four-year high, before edging down slightly to 4.4% in December. Job growth missed expectations, particularly in retail and manufacturing, although the private sector led modest gains. October's losses in government employment reflected the impact of a government shutdown. The labour market appears mixed, with limited hiring and no sign of mass layoffs, leaving the outlook uncertain. The Fed cut interest rates three times in 2025, bringing them to a three-year low of 3.6%, but policymakers remain divided on further easing. Equities were little changed, as investors await clearer signals on economic momentum and the Fed's next move.