U.S. employers added 256,000 jobs in December and the unemployment rate ticked downward to 4.1%, the U.S. Bureau of Labor Statistics announced Friday.
The burst of end-of-the-year hiring significantly exceeded economist projections and outpaced the revised job gains for November (212,000) and October (43,000). The unemployment rate declined by 0.1% from 4.2% in November.
Stocks fell Friday morning after the job numbers were released with Wall Street apparently interpreting the strong labor market as a sign the Federal Reserve Board may now postpone another interest rate cut when it meets next on Jan. 29.
Strong job gains in December were seen in healthcare (+46,000); government (+33,000); and social assistance (+23,000). Retail trade gained 43,400 jobs in December, following a loss of 29,000 jobs in November.
Leisure and hospitality added 43,000 jobs, professional business services added 28,000 jobs, and the construction industry added 8,000 jobs in December. Transportation and warehousing gained 9,600 jobs. Manufacturing lost 13,000 jobs.
In December, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3% to $35.69. Over the past 12 months, average hourly earnings have increased 3.9%.
Total nonfarm payroll employment rose by 2.2 million in 2024 for an average monthly gain of 186,000. In 2023, total payroll increased by 3 million, which represented an average monthly gain of 251,000.
The percentage of people who are employed or looking for work, known as the labor force participation rate, was unchanged at 62.5%, over the month of December and has remained within a narrow range of 62.5% to 62.7% since December 2023.
The unemployment rate has also remained relatively stable. The monthly jobless rate has been fluctuating between 4.2% and 4.1% for the past seven months, the BLS said.
State level unemployment data for December will be made available later this month. New Jersey’s November unemployment rate was 4.6%.
