First Friday: The Strange Economics of Feeling Poor While Spending More Description:

What It Covers

Paula Pant examines December 2025 economic data including delayed jobs reports, Federal Reserve interest rate decisions, holiday spending patterns showing consumer pessimism despite record online sales, and essential year-end financial planning moves.

Key Questions Answered

• •Jobs Data Gap: Bureau of Labor Statistics delayed October and November employment reports until December 16, forcing the Federal Reserve to make interest rate decisions without official jobs data for the first time in twelve years, relying instead on private sector proxies like ADP.
• •Small Business Job Losses: ADP reports 32,000 job losses in November, the largest drop in over two years, with small businesses under 49 employees bearing the entire burden while mid-size and large companies added jobs, indicating disproportionate economic pain for smaller employers.
• •Holiday Spending Paradox: Black Friday online sales hit record 11.8 billion dollars, up 9.1 percent, but average household spending dropped from 902 to 890 dollars. More households participate while spending less individually, reflecting widespread consumer pessimism despite aggregate growth appearing strong.
• •Year-End Tax Moves: IRA and HSA contributions can wait until April 2026 tax deadline, but workplace 401k contributions must complete by December 31. Self-employed individuals can defer income billing to January if expecting lower tax brackets, or accelerate to December for higher future brackets.