U.S. payrolls rose by 50,000 in December, a modest rebound after a weak autumn and an average of just 48,000 jobs per month through the first 11 months of the year. The unemployment rate fell to 4.4% while average hourly earnings climbed to $37.02, up 3.8% year over year. Gains were concentrated in food services, health care and social assistance, with losses in retail and manufacturing. Mixed signals leave the Fed’s plans for rate cuts uncertain.
U.S. Adds 50,000 Jobs in December — Signs of Stabilization Amid Mixed Labor Signals
A "Now Hiring" sign in Davenport, Fla., in December. (Phelan M. Ebenhack / AP)
The U.S. economy added 50,000 jobs in December, a modest improvement after hiring collapsed in October and only inched up in November. The report offers a cautious sign that the worst of the autumn hiring slowdown may be easing, but the broader labor-market picture remains mixed.
Key Details
Monthly Payrolls: Payrolls rose by 50,000 in December. After revisions, the economy averaged just 48,000 payrolls per month through the first 11 months of the year.
Unemployment Rate: The jobless rate fell to 4.4% in December, reversing a recent upward drift.
Wages: Average hourly earnings were $37.02 in December, up 3.8% from a year earlier — a closely watched gauge of labor-market tightness and inflationary pressure.
Sector Patterns
Job gains were concentrated in food services, health care and social assistance. Losses were reported in retail trade and manufacturing. The report was also affected by a sharp drop in government employment and a temporary delay in reporting tied to the U.S. government shutdown, which has blurred month-to-month comparisons.
On policy: JPMorgan’s Chief U.S. Economist Mike Feroli called a January Fed rate cut a “close call,” noting that if the labor market re-tightens, the Federal Reserve would likely keep policy on hold for an extended period.
Other Indicators
Economists surveyed by Dow Jones had expected payrolls to rise by about 73,000 and for the unemployment rate to tick down to 4.5%, making the actual report softer than forecasts. Executive search firm Challenger, Gray & Christmas reported that December layoff announcements were roughly half the number in November and down 8% year over year. Separately, initial claims for unemployment benefits were lower than expected for the week ending Jan. 3 — a sign some economists view as consistent with a cooling but resilient job market.
Bottom line: December's report shows modest hiring and steady wage growth, leaving policymakers and markets weighing whether labor-market strength will delay Fed rate cuts. The data is encouraging in that hiring did not deteriorate further, but mixed signals from revisions, government employment changes and other indicators argue for caution.
Originally published on NBCNews.com.
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