Unemployment Little Changed at 4.1%
Jobs Growth
The strong rate of jobs growth exhibited in November continued in December, reaching a solid 256,000.
Top Industries
Sustaining recent trends, the strongest sectors for growth continued to be healthcare, government and social assistance. Reversing last month’s loss of 29,000 retail jobs, the sector recorded a gain of 43,000 jobs in December.
Unemployment
The unemployment rate showed little movement over the month, although it did shift from 4.2% in November to 4.1% in December.
Wages
Average hourly earnings gained 0.3% in December, moving the 12-month average down slightly compared to the prior month, netting out at 3.9%.
Work Week
The average work week remained at 34.3 hours for the fifth month in a row.
Temporary Job Trends
Following adjustment to the previously reported figure, the temporary jobs sector gained 6,200 jobs in November, followed by a gain of 5,300 jobs in December.
What Does It All Mean?
The latest report of labor market activity has set an enticing table for 2025. From job creation to unemployment to wages, the market seems to have returned to pre-pandemic norms, achieving a balance that can sustain economic expansion while tempering fears of both rising inflation and imminent recession.
With two solid months of job gains closing out the year, the pace of growth offers strong momentum heading into a new year. Overall, 2.2 million jobs were created in 2024, averaging a gain of 186,000 every month. This compares to 3 million new jobs in 2023, with an average monthly gain of 251,000. So while the pace is less robust than the previous year, the activity levels remain strong. The most active sectors were healthcare and social assistance, leisure and hospitality, and government.
Unemployment levels in 2024 stayed within a tight band that generally showed little movement from month to month throughout the year. Many economists view thatas a state of full employment.
Wages continued to grow throughout 2024, although the rate of wage growth trended lower than the two prior years. Slower wage growth helps control inflation. With a new administration in Washington soon to introduce changes to economic policies and strategic priorities, there is a degree of uncertainty about the future. Whatever lies ahead, the labor market offers a solid platform for expanded growth.
Sources: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, CNN, CNBC, Reuters, The New York Times, The Wall Street Journal
