U.S. employers added 256,000 jobs in December, and the unemployment rate decreased to 4.1%, according to the U.S. Bureau of Labor Statistics on Friday.
The hiring surge surpassed economist expectations and exceeded revised job gains for November (212,000) and October (43,000). The unemployment rate fell by 0.1% from November's 4.2%.
Following the release of these figures, stocks declined on Friday morning as Wall Street interpreted the robust labor market as a potential reason for the Federal Reserve Board to delay another interest rate cut at its next meeting on January 29.
December saw significant job growth in healthcare (+46,000), government (+33,000), and social assistance (+23,000). Retail trade added 43,400 jobs after losing 29,000 jobs in November.
Leisure and hospitality gained 43,000 jobs; professional business services added 28,000 jobs; construction increased by 8,000 jobs; transportation and warehousing rose by 9,600 jobs. Manufacturing experienced a loss of 13,000 jobs.
Average hourly earnings for all employees on private nonfarm payrolls increased by $0.10 or 0.3% to $35.69 in December. Over the past year, average hourly earnings have risen by 3.9%.
Total nonfarm payroll employment grew by 2.2 million in 2024 with an average monthly gain of 186,000 compared to a total increase of three million in payrolls during 2023 with an average monthly gain of 251,000.
The labor force participation rate remained unchanged at 62.5% throughout December and has been within a narrow range between 62.5% and 62.7% since December last year.
The unemployment rate has also shown relative stability over recent months fluctuating between rates of around four percent according to BLS data which will provide state-level unemployment statistics later this month while New Jersey reported its November figure at approximately four-point-six percent previously noted
