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What Did the December Jobs Report Show?
The U.S. economy added 50,000 jobs in December, falling short of economists' forecasts and marking a slowdown from November's gains. For 2025 as a whole, payroll employment increased by just 584,000 — a sharp decline from 2024's 2 million job gains.
The sectors showing growth were familiar ones: food services and drinking places added 27,000 jobs, healthcare added 21,000, and social assistance contributed 17,000. Retail, however, shed 25,000 positions. The unemployment rate edged down to 4.4%, with the labor force participation rate holding steady at 62.4%.
The Bureau of Labor Statistics also revised prior months downward — October's numbers dropped by 68,000 jobs, and November was revised down by 8,000. As B. Riley Wealth's Art Hogan noted, "The overarching takeaway in today's report is that there is more good news than bad."
Separately, ADP's National Employment Report showed the private sector added 41,000 jobs in December, rebounding from November's losses. Small businesses drove the gains, while larger employers pulled back slightly.
Why Are Job Openings at a 16-Month Low?
The latest JOLTS data paints a picture of a labor market that's cooling but not collapsing. Job openings fell to 7.15 million in November — the lowest since September 2024 — down from 7.45 million in October.
Hiring also slowed, with just 5.12 million new hires in November (the lowest since June 2024). The hiring rate of 3.2% matches the lowest rate in more than a decade outside of the pandemic. Yet layoffs remain subdued, and the quits rate ticked up slightly to 2.0% — potentially a sign of returning worker confidence.
The takeaway for HR leaders: candidates aren't flooding the market, but they're not jumping ship either. Retention may be less of an emergency, but sourcing top talent isn't getting easier.
The $120K Remote vs. $240K In-Office Debate
A TikTok that went viral in December posed a simple question: Would you take a fully remote job paying $120,000 or a fully in-office role paying $240,000?
Business Insider surveyed 365 readers and found the results split almost exactly down the middle — 183 chose the remote role, 182 chose the in-office salary. The remote camp cited flexibility, mental health, and freedom from rigid corporate culture. Those choosing the higher salary argued that flexibility shouldn't come at the cost of organizational performance.
For employers, this signals that compensation alone isn't the deciding factor for a significant portion of the workforce. Flexibility has real economic value to candidates — and forcing a return-to-office without acknowledging that tradeoff may cost you talent.
Related: The Trump administration issued new guidance cracking down on remote work at federal agencies, directing leadership to "take all necessary steps to terminate remote work arrangements" except in emergencies.
How is Gen Z Thinking About Career Growth?
New research from SurveyMonkey reveals that Gen Z workers care deeply about career advancement — but not about employer loyalty. Only 28% report satisfaction with their current career path (compared to 47% of Gen X), and one in three say they'd rather switch companies than wait for internal promotion.
Yet 80% still aspire to leadership roles. The catch? They refuse to sacrifice health, personal boundaries, or values to get there. Nearly one in five Gen Z workers actually feel happy when contacted outside work hours — viewing it as a sign of inclusion rather than intrusion.
For talent acquisition teams, the message is clear: demonstrate visible growth pathways and communicate how advancement actually happens in your organization. Vague promises won't cut it.
Is AI Actually Changing Hiring Outcomes?
Workplace AI adoption continues to climb, with Gallup reporting that 45% of U.S. employees used AI at least a few times in the past year — up from 40% in Q2 2025. Daily use grew from 8% to 10%, with knowledge workers leading adoption (76% in tech/IT, 58% in finance).
But the impact isn't evenly distributed. Research from the Dallas Federal Reserve found that young workers (ages 22-25) in AI-exposed occupations have seen a 13% employment decline since 2022, while employment for less-exposed or more experienced workers has held steady or increased.
Meanwhile, Harvard Business Review reports that AI only boosts creativity for employees with strong metacognitive skills — the ability to evaluate, question, and refine AI outputs rather than accepting first suggestions. For everyone else, AI made little difference to creative performance.
The legal landscape is also shifting. Multiple pending lawsuits allege that AI-powered hiring tools produce discriminatory outcomes, and employers face growing exposure under the False Claims Act and employment discrimination law. Proactive auditing of AI tools is no longer optional.
Global Snapshot
Canada added just 8,200 jobs in December while unemployment rose to 6.8%. Colombia announced a 22.7% minimum wage increase. India's tech job openings fell 24% year-over-year. And UK vacancies declined for the fifth consecutive month, down 15.2% from last year.
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About the Need to Know Briefing
The Need to Know Briefing is published weekly by Kelly, curating the most important workforce and hiring insights for HR leaders and hiring managers.