ECONOMY
US Employers Added 216,000 Jobs In December, A Strong Close To The Year
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The U.S. economy added 216,000 jobs in December, closing out the year on a much stronger note than expected.
December’s job gains mark a significant increase over November, which was revised down to an added 173,000 jobs from the 199,000 originally reported, according to Friday’s report from the Bureau of Labor Statistics.
The unemployment rate of 3.7% in December was unchanged from November, marking the 23rd straight month with unemployment under 4%. The 3.4% unemployment rate in April 2023 marked a 50-year low. There were 6.3 million unemployed people in December, essentially unchanged from November, the agency said.
December’s strongest jobs gains came in government employment, with 52,000 jobs added, followed by healthcare, with 38,000 jobs added. The leisure and hospitality sector added 40,000 jobs, while 28,000 jobs were added in the social assistance sector.
Meanwhile, 23,000 jobs were lost in the transportation and warehousing sector in December, the agency said. Since
reaching a peak in October 2022, employment in transportation and warehousing has decreased by 100,000.
Average hourly earnings for all workers on private, nonfarm payrolls rose by 15 cents, or 0.4 percent, to $34.27 in December. Average hourly wages were up 4.1% year-over-year, compared to 4% in November.
The Federal Reserve last month held interest rates steady for the third time in a row, after aggressive hikes since 2022 to combat inflation.
The central bank maintained the target range for the federal funds rate at 5.25% to 5.5%, despite recent indicators of strong economic growth and a resilient labor market even as inflation remains above its target of 2%.
The robust job gains may make the Fed cautious about potentially cutting the interest rate at its next meeting. The Fed saw resilient but moderated job market as a sign of progress toward reducing inflation, and any further heating may keep potential rate cuts out of reach. While job gains have hovered around 200,000 over the past four months, the economy was adding more than 300,000 jobs per month during the same period a year before.
“Inflation has eased from its highs, and this has come without a significant increase in unemployment. Thats very good news,” Fed Chair Jerome Powell said after last month’s meeting, though he added that officials didn’t want to take the possibility of additional hikes off the table.
The Federal Open Market Committee predicted it would lower its key interest rate by three-quarters of a point in 2024, indicating three typical cuts of a quarter point each.
The prospect of a so-called soft landing, bringing inflation back down to 2% without a significant spike in unemployment, is still uncertain, Powell said.
“This result is not guaranteed, Powell said. It is far too early to declare victory.
TMX contributed to this article.
