01/05/2024

U.S. Job Growth Beats Expectations in December

Meanwhile, wages rose solidly

U.S. employers hired more workers than expected in December while raising wages at a solid clip, casting some doubt on financial market expectations that the Federal Reserve would start cutting interest rates in March.

Nonfarm payrolls increased by 216,000 jobs last month, the Labor Department's Bureau of Labor Statistics (BLS) said in its closely watched employment report on Friday. Data for November was revised lower to show payrolls rising 173,000 instead of 199,000 as previously reported.

Economists polled by Reuters had forecast payrolls increasing by 170,000 jobs. The economy added 2.7 million jobs in 2023, a sharp step-down from the 4.8 million positions created in 2022. That reflects cooling demand for both labor and in the broader economy following 525 basis points worth of rate hikes from the U.S. central bank since March 2022.

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