US economy adds 216,000 jobs in December, beating expectations
Harris Financial Group managing partner Jamie Cox predicts the latest job report numbers will show signs of 'moderating.'
The labor market ended 2023 on solid footing as job growth continued to chug along at a healthy pace in December.
Employers added 216,000 jobs in December, the Labor Department said in its monthly payroll report released Friday, topping the 170,000 gain forecast by Refinitiv economists. The unemployment rate held steady at 3.7%.
The report also contained sizable downward revisions to job growth during the previous two months. Gains for October and November were revised down by a total of 71,000 jobs to a respective 105,000 and 173,000, the government said, suggesting that the labor market is weaker than it previously appeared.
In total, the economy added about 2.7 million jobs over the course of 2023, down from 4.8 million in 2022.
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«The labor market and economy have normalized and are in a healthy place – not too hot, not too cold,» said Sonu Varghese, global macro strategist at Carson Group.
In another show of strength for the economy, average hourly earnings – a key measure of inflation – increased 0.4% for the month and remained up 4.1% from the same time one year ago. Both of those figures came in slightly ahead of expectations.
The Federal Reserve has signaled that it is closely watching the report for evidence that the labor market is finally cooling after nearly two years of interest rate hikes. Policymakers voted last month to leave their benchmark rate unchanged for a third straight time and signaled they could soon begin cutting rates amid signs the economy is gradually slowing.
Workers frame a home under construction at the Cold
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