The U.S. labor market is ending 2025 on a sour note: Many companies trimmed head count and wage gains slowed.

Core Insights - Unemployment rates have increased this year, indicating potential economic challenges ahead for 2026 [1] - Wage growth has slowed down, which may impact consumer spending and overall economic health [1] Employment Trends - The rise in unemployment suggests a weakening labor market, which could lead to further economic difficulties [1] - The decrease in wage growth may reflect reduced demand for labor or increased economic uncertainty [1] Economic Outlook - The combination of rising unemployment and shrinking wage growth could set the stage for a more challenging economic environment in 2026 [1]