Marketplace Morning Report The worst year for job creation since 2020
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Jan 9, 2026 Diane Swonk, Chief Economist at KPMG, provides keen insights into the disappointing December jobs report, revealing only 50,000 new positions created. She discusses how the declining unemployment rate can hide deeper labor market issues, including low workforce participation and stress among workers. The conversation also touches on the emotional recovery of LA fire survivors, sharing poignant stories of cherished items lost and found, illustrating resilience in the face of adversity.
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Labor Market Weakness Hidden By Headlines
- 2025 posted just 584,000 jobs, the weakest annual hiring since 2020 and second-weakest since 2009.
- Diane Swonk says headline unemployment masks deeper labor-market stress like rising involuntary part-time work.
Holiday Hiring Was Compressed Into December
- Leisure and hospitality rebounded in December as holiday-season hiring compressed into one month.
- Diane Swonk links the surge to delayed activity from a government shutdown and travel disruptions.
Falling Unemployment Can Mislead
- The unemployment rate fell to 4.4% but for the wrong reason: labor-force participation declined.
- Diane Swonk warns the headline rate understates people forced into part-time work and broader marginalization.