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- The Job Market Is Still Moving, But It’s Doing The Speed Limit
The Job Market Is Still Moving, But It’s Doing The Speed Limit
December gave us a jobs report that’s more slow jog than victory lap. Payrolls rose by 50,000, missing expectations, while unemployment slipped to 4.4%.
The vibe for 2026 looks like low-hire, low-fire, where companies keep the lights on, keep teams lean, and only add headcount when they absolutely have to.

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The headline is that hiring cooled again. December job gains came in at 50,000, a touch below November and well short of what economists expected.
Zoom out, and 2025 was a weak hiring year by historical standards, with job growth averaging roughly 49,000 a month.
That is a big comedown from 2024’s much stronger pace.
But here’s the twist - unemployment dipped to 4.4%. That doesn’t mean the job market is suddenly strong. It means the market is weirdly tight and sluggish at the same time.
Companies aren’t hiring much, but they also aren’t firing in bulk. That’s the definition of low-hire, low-fire.
A few forces are driving the stalemate:
Uncertainty around costs and policy headlines is keeping hiring managers cautious.
Labor supply constraints are real in some pockets, which can keep unemployment from spiking even when hiring slows.
AI and automation are giving exec teams a reason to pause and ask: do we need a new role, or can tools absorb the work?
Workers are staying put, which reduces churn and quietly lowers hiring needs.
Under the surface, the report had some “watch this” details.
Hours ticked down, temp hiring stayed soft, long-term unemployment rose, and more people are stuck in part-time work when they want full-time roles.
That’s usually what a cooling market looks like before it becomes obvious in the headline numbers.
For the Fed, this kind of report argues for patience. With unemployment not surging but hiring momentum weak, the next move is likely “wait, watch, and try not to overreact.”
For investors, the playbook doesn’t change: own companies that thrive when businesses prioritize efficiency and consumers still spend, just more selectively.

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Actionable Stuff
Don’t confuse low unemployment with strong hiring. This is a cautious labor market with tighter supply.
Favor quality cash flows. Slow hiring can mean slower growth and more picky spending.
Lean into efficiency winners. Tools that save time, reduce headcount needs, or improve productivity.
Avoid fragile cyclicals. If demand softens, they feel it first.
Scale in, don’t swing. This is a headline-driven market, so build positions in pieces.

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Bottom Line
December jobs growth was soft, unemployment dipped, and the bigger message is that the labor market is stuck in low-hire, low-fire mode.
That’s not recession panic, but it is slow-motion caution.
The clean way to play it is to own durable cash flows and the productivity stack that helps companies stay lean, while you avoid the parts of the market that need a hiring boom to look good.

That’s it for today’s edition—thanks for reading! Reply to this email with any feedback or let me know which macro trends or markets you’d like me to cover next.
Best Regards,
—Noah Zelvis
Macro Notes


