Posted 1/5/2024, 2:18:44 PM
U.S. Job Growth Exceeds Expectations in December, Unemployment Holds Steady at 3.7% While Wages Rise
- Employers added 216,000 jobs in December, surpassing economist expectations. The unemployment rate held steady at 3.7%.
- Job growth slowed in 2023 compared to 2021-2022 but remained strong by historical standards at 2.7 million jobs added.
- Wage growth picked up to 0.4% month-over-month and 4.1% year-over-year, above the Fed's comfort zone.
- The healthcare, government, and leisure/hospitality sectors saw the largest job gains in December. Transportation/warehousing saw declines.
- Investors pushed back expectations of Fed rate cuts given the strength of the labor market. Concerns remain about high wage growth fueling inflation.