Here’s what the data said about the labor market in 2025: Hiring slowed. Layoffs, as proxied by initial jobless claims, remained near historic lows. And workers were in no big rush to quit their jobs. Taken together, these numbers might suggest a softening labor market, with fewer jobs and less competition for workers. But hiring and employment churn are only part of the equation. Wages are another. And pay growth was robust in 2025.