The U.S. labor market added 50,000 non-farm jobs in December, significantly missing the 66,000 forecasted by economists. Despite the modest job gains, the unemployment rate improved slightly to 4.4% from November's 4.5%. Key sectors showed mixed results, with healthcare adding 18,000 jobs and government employment rising by 15,000, while retail trade lost 12,000 positions. The December figures mark the smallest monthly job increase since July 2023, reflecting a potential slowdown in employment growth. Average hourly earnings rose by 0.3% month-over-month, with a year-over-year increase of 4.2%. The labor force participation rate remained steady at 62.8%. These developments come as the Federal Reserve considers its monetary policy direction for 2025, with employment data playing a crucial role in upcoming decisions.