The latest nonfarm payrolls report reveals the economy added 256,000 jobs in December, significantly surpassing the consensus forecast of 155,000. Meanwhile, the unemployment rate dipped to 4.1%, defying expectations of remaining steady at 4.2%.
These figures are closely watched by financial markets, as they heavily influence expectations for future monetary policy decisions. Following the report, bond yields surged, reflecting the market’s reaction to the stronger-than-anticipated labor data.
The Labor Department reported Friday that job growth was up last month from 212,000 in November.For all of 2024, the economy added 2.2 million jobs, a solid number but down from 3 million in 2023, 4.5 million in 2022 and a record 6.4 million in 2021 as the economy bounded back from massive pandemic layoffs.
The monthly numbers beat forecasters’ expectation of around 155,000 new jobs and 4.2% unemployment. Healthcare and government jobs led the December increase.
Labor Department revisions shaved 8,000 jobs from October and November payrolls. Average hourly wages rose 0.3% from November and 3.9% from a year earlier. The year-over-year wage gain was slightly less than economists had forecast.Getting a clear view of the U.S. job market hasn’t been easy the past few months.Hurricanes and a big strike at Boeing threw off the October jobs numbers, pushing them down and setting up a payback rebound in November that likely exaggerated the strength of hiring.