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In this week’s edition:
The job market is getting tougher.
The door is closing on Affordable Care Act subsidies.
Yes, you should tip folks for the holidays — if you can.
Big banks vs. neobanks.
Coming soon: NerdWallet’s 7-Day Financial Reset.
Elsewhere in money news:
Think before you return unwanted gifts – some retailers are charging fees. (ABC News)
Can viral social media trends save chain restaurants? (NPR)
Australia has banned teens from social media, but how does it work? (BBC)
Approval of President Donald Trump’s economic performance hits a 2-term low. (The Hill)
5 things to know about the job market right now
The latest jobs report — arriving weeks after it was originally scheduled — gives us a snapshot of where the labor market sits at the end of the year. Even without complete data from October, lost to the government shutdown, all signs point to significant cooling.
Here are some of the key warning signs that the labor market may be headed for trouble.
1. Unemployment is the highest it’s been in years
In November, the unemployment rate registered at 4.6% — a 0.2 percentage point increase from September and the highest rate since fall of 2021. In September 2021 it was 4.7%, dipping to 4.5% in October 2021.
In January, there were 6,849,000 unemployed people. By November, there were 7,831,000 — an increase of nearly a million people.
2. There are fewer job opportunities for seekers
It’s a weak market for job seekers, characterized by:
Flat hiring growth, particularly over the past six months, which means fewer people are being hired.
Higher unemployment over the past year, which means people are vying with more people for positions.
More people working part time for “economic reasons” — meaning they prefer to be working full-time, but can’t get those jobs.
3. Health care is propping up job growth
The jobs data shows that health care has been a key industry, propping up overall employment numbers even as other sectors remain stagnant or shrink.
Health care led the charge in November, adding 46,000 jobs — the biggest gain among all major industries. This is far from a fluke: All year long, the sector has consistently been one of the top drivers of monthly job growth, expanding 2.5% since last November.
4. The federal government keeps leading the way in layoffs
For most of the year, layoffs have been concentrated in the federal government. In November, payrolls dropped by 6,000 on top of a whopping 162,000 decline in October, as workers who took deferred resignation ended their employment.
The cuts stem from mass workforce reductions launched earlier this year by the short-lived Department of Government Efficiency (DOGE). Since January, federal employment is down 271,000.
Other industries saw notable reductions in November including transportation and warehousing (-18,000). Since hitting a peak in February, transportation and warehousing is down by 78,000 workers.
5. Wage growth has slowed
Wage growth — the change in average hourly earnings over 12 months — slowed to 3.5% in November. At the start of the year, wage growth was nearly 4%. That pace matches levels in March 2020. While the November figure remains well above the lows of April 2021 (+0.6%) and May 2021 (+2.3%), it’s weaker than most monthly growth we’ve seen in the past few years.
The slowdown matters. Lagging wage growth means higher prices will eat further into people’s paychecks. And if inflation flares suddenly, households may quickly feel how much less their income can cover.
Debt-free December: For 25 days straight, NerdWallet is giving away $100,000 cash to help you pay down your debt or use however you choose. 25 days. 25 prizes. 25 chances to win $100,000. Learn more.
The door is closing on Affordable Care Act subsidies
Dec. 31 will mark more than the end of 2025. Barring a holiday miracle, enhanced subsidies that have enabled millions of Americans to afford health insurance through the Affordable Care Act will also end when the clock hits midnight.
What’s going away?
The premium tax credit can help pay for marketplace health insurance premiums, depending on income. Since 2021, “enhanced” subsidies have been both more generous and more widely available than the original version.
Enhanced subsidies made subsidized premiums about $705 cheaper in 2024, according to KFF, a health policy nonprofit.
Those enhanced subsidies are set to expire on Dec. 31, with smaller tax credits — and therefore pricier premiums — starting in 2026.
What happens without enhanced subsidies?
Premiums will get much pricier — double the cost or more for many people, according to KFF.
Millions of enrollees might lose their insurance when they can no longer afford it, according to the Congressional Budget Office (CBO). Those who can afford coverage might need to choose more expensive plans with less generous benefits.
What are the options for insurance coverage?
Despite higher premiums across the board, it’s worth shopping around to find the best health insurance plans.
If you qualify for (non-enhanced) subsidies, Silver plans generally cost less and cover more than other options, so they’re probably your best bet.
If you’ve lost subsidies, Bronze plans might have lower premiums — but you’ll have higher out-of-pocket costs. Compare quotes for Gold plans, too, which are sometimes cheaper than Silver when unsubsidized.
You could also look at other ways to get health insurance. But watch out with options like short-term health insurance, which might have worse coverage and/or consumer protections.
Nerdy money tips
Set a reminder to activate your credit card bonus categories. Some credit cards rotate categories every quarter. Mark your calendar to avoid missing out on rewards. Learn more from the Nerds.
Make a plan to reach your savings goal. Pick your target savings amount and set an end date. Use our calculator to work out how much to set aside each month.
Protect your child's credit with this simple step. A credit freeze can help prevent identity thieves from using your child’s personal data to take out credit. NerdWallet writers Amanda Barroso and Lauren Schwahn explain how it works.
Holiday tipping: How to show thanks without overspending
You’re invited to a timeless holiday tradition: Figuring out who the heck you’re supposed to tip, how much, and whether you can actually afford this kind-but-pricey ritual.
We’ve got you. Showing your appreciation doesn’t have to be stressful and budget-busting. Here’s your cheat sheet.
Who am I supposed to tip?
Tip people you see regularly throughout the year, says Crystal L. Bailey, director of The Etiquette Institute of Washington (in D.C.). Think: nanny, dog walker, housekeeper or regular stylist.
Who gets money, and how much?
Give money — rather than gifts — to people you pay directly, Bailey says, adding that it’s fine to stick with whatever payment type you typically use. How much to tip depends on your budget, but Bailey suggests giving up to the amount of a single service, or doubling your usual tip.
Who gets gifts, and what kind?
If payments are indirect, like those to a caregiver or teacher, go with a gift card. (Bonus points if it’s for a local establishment.) Or give a gift, such as a book, plant, candle or baked good. If you bring something edible, include a note about allergens.
What if I’m not sure whether the person is allowed to get tips?
If tipping feels weird, ask if it’s OK. For nursing home or health care employees, for example, call the agency to ask about tipping policies. Or simply ask the person directly.
What if all this tipping feels overwhelming?
Understandable! To be clear, tips are not required. Rent, car payments and credit card bills — those are required. Prioritize essential expenses, and tip only if it feels comfortable, focusing on the providers you see most often.
What would this writer’s mom say?
She would back up every etiquette expert: Write a note! Whether you’re tipping or not, always write a note of appreciation. No need for it to be long or poetic — just a few sincere sentences can help someone feel seen.
The hidden cost of sticking with your big bank
Where you put your money matters more than you think. Staying with a big bank might feel convenient — but it could be quietly costing you. Learn how neobanks and other digital options compare on interest rates, fees, and overall convenience so you can make a more informed choice.
In case you missed it
Here’s what else you may have missed from NerdWallet:
We finally have fresh inflation data after the October consumer price index report was skipped due to the federal government shutdown. News writer Anna Helhoski relays the latest about what happened to prices between September and November.
Are we in an AI bubble? Investing writer Sam Taube talked to 13 economists to find out.
Mortgages writer Kate Wood delivers the latest in weekly mortgage rates.
The student loans landscape is shifting. Loans managing editor Julie Myhre-Nunes breaks down sluggish repayment and forgiveness buybacks, the end of SAVE and what it all means for borrowers.
Coming Soon: NerdWallet’s 7-Day Financial Reset
New Year’s resolutions have a way of fizzling out quickly — if they even get started at all.
We understand. Life’s busy, and keeping up with money goals for an entire year can feel overwhelming. But building better financial habits doesn’t have to be a year-long project. A weeklong challenge just might do the trick.
We bring you the 7-Day Financial Reset, coming to the NerdWallet app Jan.1-7. Each day, we’ll give you one smart step you can take to improve your finances. We’ll guide you through trimming subscriptions, protecting your credit, boosting your savings and more.
By the end of the week, you’ll have a clearer sense of where your money is going and how to make it work harder for you in 2026.
Ready for a fresh start? All you need to do is download the NerdWallet app. We’ll see you in January.
- L.S.
Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.
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Until next week,
