Additional Coverage:
- The US economy ended 2024 with a bang, adding more jobs than expected in December while unemployment ticked down (newsbreak.com)
The U.S. job market remained strong in December, adding 256,000 jobs, exceeding expectations. Unemployment fell to 4.1%, below the projected 4.2%.
Economists note that the labor market has stabilized after initial concerns in early 2024. Labor force participation and employment-population ratio both increased.
Wage growth slowed slightly, with hourly earnings rising by 3.9% year-over-year. Healthcare, in particular, saw significant job growth, while manufacturing and mining industries experienced job losses.
The strong job report is unlikely to influence the Federal Reserve’s expected pause in interest rate cuts. However, economists predict a challenging job market in 2025, with employers potentially cautious in hiring during the first half of the year.