The
Labor Market Insights report provides a monthly overview of key labor market statistics.
As the changing workforce and economic conditions continue to be top of mind for workers compensation executives, this valuable resource delivers timely perspectives on what the latest jobs reports mean for the industry. The
data and insights shared in this monthly publication are designed to provide just-in-time information to help industry leaders make informed decisions.
Key Insights:
- In December 2025, the economy ended the year by adding 37,000 jobs in the private sector and 50,000 jobs overall. October and November employment gains were revised down by a combined 76,000 jobs, with the bulk of the overestimation occurring during the government shutdown in October.
In 2025, employers added 584,000 jobs, the slowest pace of annual job growth outside of a recession since 2003. The health care and social assistance industry added 713,000 jobs while government jobs declined by 149,000 overall, with losses of 274,000 at the federal level. Manufacturing lost 68,000 jobs and marked the third straight year of declines in employment. Most other industries, including construction, saw small employment gains for the year. - Despite slow employment growth, payroll growth stood at 4.3% in 2025, only slightly below the 4.6% of 2024 and the pre-pandemic average. Payroll growth is a better indicator for workers compensation than employment growth alone.
- The unemployment rate moved up slightly from 4.1% at the end of 2024 to 4.4% to end 2025. The rise this year was driven by more job seekers, with prime-age participation up from 83.4% at the end of 2024 to 83.8% in December 2025.
Big Picture: 2025 was a “low hire, low fire” environment where moderating but still solid wage growth offset sluggish employment growth, supporting overall payroll growth for workers compensation. The main question for 2026: Will hiring improve or remain slow?
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