The U.S. economy experienced modest job growth in December, reflecting steady hiring amidst ongoing economic uncertainties. The Labor Department revealed that employers added 50,000 jobs last month, falling short of economists’ expectations of 60,000, as projected by LSEG.
The unemployment rate edged down to 4.4% in December, slightly better than the anticipated rate of 4.5%. This decrease follows a reported increase to 4.6% in November, the highest level since September 2021, though it was later revised to 4.5% following a routine population adjustment by the Bureau of Labor Statistics (BLS).
Moreover, revisions to previous payroll figures have revealed that employment in October and November was 76,000 jobs lower than earlier reports. Specifically, October’s job numbers were revised down by 68,000, shifting from a loss of 105,000 to a loss of 173,000. November’s figures also saw a downward revision of 8,000, adjusting from a gain of 64,000 to 56,000.
In December, private sector payrolls contributed 37,000 jobs, which was below the LSEG estimate of 64,000. The government sector added a total of 13,000 jobs, with local government hiring growing by 18,000 and federal government jobs increasing by 2,000, although these gains were partially offset by a loss of 7,000 state government positions.
As the job market continues to adapt to shifting economic conditions, these statistics underline the complexities facing employers and employees alike. As this story develops, further updates are expected to shed light on the employment landscape in the new year.