Business
US job creation in 2025 slows to weakest since Covid
The number of jobs created in the US grew only modestly in December, as a weak year for the employment market in the world’s largest economy drew to a close.
Employers added 50,000 jobs in the final month of 2025, according to Labor Department data, which was fewer than expected. But the unemployment rate dipped to 4.4%.
Job gains last year were the smallest since 2020, when the Covid pandemic led to widespread cuts.
Businesses have been operating in an environment marked by US President Donald Trump’s dramatic policy changes, including tariffs, an immigration crackdown and cuts to government spending.
The US economy has held up in the face of these shifts, growing at an annual rate of 4.3% over the three months to September.
But the expansion – driven by steady consumer spending and a growth in exports – has not been accompanied by significant job creation.
On average, the US added just 49,000 roles per month in 2025, down from an estimated gain of two million a month the year before.
The Labor Department said the US also added 76,000 fewer new positions in October and November than previously estimated.
Retailers and manufacturers were among the sectors reporting losses last month, which were offset by hiring at health care employers, bars and restaurants.
The data underscores the mixed dynamics facing job-seekers in the US, where hiring has cooled markedly over the last year but fears of mass layoffs have not materialised.
The US Federal Reserve central bank has responded to the slowdown by cutting its key lending rate in hopes of giving the economy a boost, despite concerns that inflation is still bubbling.
But the central bank is divided about how much lower borrowing costs should go.
Analysts said the latest figures – which showed the jobless rate recovering to the 4.4% level where it stood in September – would do little to resolve those debates.
“Today’s report confirms what we think has been evident for some time—the labor market is no longer working in favour of job seekers,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
But she added: “Until the data provide a clearer direction, a divided Fed is likely to stay that way. Lower rates are likely coming this year, but the markets may have to be patient.”
HSBC has revealed it stripped out 1.2 billion dollars (£890 million) worth of costs last year after cutting back its senior management team, as it hiked bonuses for staff by 10%.
The global banking giant has been embarking on a sprawling simplification programme that has involved big changes to its structure, in a bid to become more “agile”.
It previously set a target to make 1.5 billion dollars (£1.1 billion) in annual cost reductions by the end of 2026, under the leadership of chief executive Georges Elhedery.
But on Wednesday, the bank revealed that it is expecting to achieve this by the end of June – six months ahead of schedule.
It follows some 1.2 billion dollars (£890 million) worth of cost savings being found during 2025 alone.
Mr Elhedery, who stepped into the top job in 2024, said that a large amount of the savings had come from the “deduplication” of jobs within the group, particularly among more senior positions.
He said this resulted in a net 15% reduction of managing director positions, which has not had any impact on the group’s revenues.
Meanwhile, HSBC revealed that it handed out bonuses worth 3.9 billion dollars (£2.9 billion) to its eligible staff during the year – a 10% increase compared with 2024.
The bank said it ensured its “highest performers had the strongest variable pay outcomes compared to the prior year”.
Mr Elhedery took home a pay packet of £6.6 million in 2025, made up of his salary and benefits, plus an annual bonus and long-term incentive award of about £4.8 million.
HSBC’s pay committee said it intends to grant the chief executive the maximum long-term incentive award worth 600% of his salary, which amounts to £9 million, for 2026-28.
The value will be subject to the bank’s performance over the next three years, and delivered in instalments.
HSBC said it was striving to create a “high-performance culture” where staff are better rewarded for work that boosts the performance of the bank.
Nevertheless, it reported lower earnings for 2025, with its pre-tax profit down about 7% year-on-year to 29.9 billion dollars (£22.1 billion).
This took into account the impact of losses related to its stake in the Chinese Bank of Communications, and restructuring costs from its simplification programme.
Shares in HSBC were up by about 6% in early trading on Wednesday.
Changes announced in the Budget mean all energy bills will see some kind of reduction, but it will vary.
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The Indian government has proposed the Income-tax Rules 2026, making PAN cards mandatory for select high-value transactions. Replacing the 1962 rules, these changes aim to simplify and bring transparency to the tax system. After considering suggestions, the rules are expected to be finalized and implemented by April 1, 2026.
Here’s a detailed look about how PAN cards are used in various financial transactions.
Immovable Property Transactions: PAN will be required for property transactions exceeding Rs 20 lakh, which is up from Rs 10 lakh. It will include purchase, sale, gift, or joint development agreements.
Motor Vehicles Purchase: PAN is now required for motor vehicle purchases exceeding Rs 5 lakh, including two-wheelers that have been exempted so far. Additionally, those who buy premium bikes or expensive cars will need to quote PAN. Meanwhile, tractors are still excluded.
Cash Deposits And Withdrawals: PAN will be required for aggregate cash deposits or withdrawals exceeding Rs 10 lakh in a financial year. As per the existing rules, it is required for cash deposits of more than Rs 50,000 in a day at a bank or post office.
Hotel And Restaurant Payments: It will be required for cash payments exceeding Rs 1 lakh, which is up from Rs 50,000.
Insurances: PAN will be required to initiate account-based relationship with insurance companies, irrespective of the premium account.
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