December hiring was sluggish, with only 50,000 jobs added, leading to a 4.4% unemployment rate. Businesses are reluctant to hire due to economic uncertainty caused by shifting tariff policies, inflation, and the rise of artificial intelligence.

Despite weak job gains, the economy has stabilized. Some Federal Reserve officials are concerned about inflation, while others worry about the lack of hiring. Manufacturing, construction, and retail sectors shed jobs, while health care and hospitality industries saw gains.

The job market has become a “low-hire, low-fire” environment, with layoffs remaining low. Job seekers, like Ernesto Castro, are struggling to find new roles amid uncertainty and reliance on artificial intelligence. The economy’s growth has increased, but hiring remains subdued.

Tariff uncertainty has caused firms like Renewables, Inc. to delay hiring. Steve Heckeroth, the CEO, cited shifting costs for parts and components overseas due to tariffs. Despite expectations of hiring acceleration, weak job gains could impact future growth.

Productivity has improved, allowing companies to produce more without adding jobs. The economy continues to expand, with strong consumer spending driving growth. The Federal Reserve Bank of Atlanta forecasts solid growth but acknowledges the impact of automation and artificial intelligence on job creation.

Read more at Yahoo Finance: Sluggish hiring closes out a frustrating year for job seekers though unemployment slips to 4.4%