StoneX Chief Market Strategist Kathryn Rooney Vera discusses the importance of federal spending cuts to making money.
The U.S. economy added jobs faster than expected in December as Federal Reserve policymakers closely monitor the strength of the labor market ahead of a meeting later this month.
The Labor Department reported on Friday that employers created 256,000 jobs in December, well above the LSEG economists’ estimate.
The unemployment rate was 4.1%, slightly lower than economists’ expectations.
The number of jobs added in the previous two months were both revised up, with the number of jobs created in October revised up by 7,000, from an increase of 36,000 to 43,000; while November was revised down by 15,000 from a gain of 227,000 to 212,000. Overall, 8,000 fewer jobs were created in those two months than previously announced.
THESE ARE THE FASTEST GROWING JOBS IN THE US, SAYS LINKEDIN
Private sector payrolls added 223,000 jobs in December, well above the 135,000 estimated by LSEG economists.
The manufacturing sector saw employment fall by 13,000 in December, a surprise drop when economists had projected an increase of 5,000 jobs.
Wage growth was largely in line with expectations, with average wages rising 0.3% month-on-month and 3.9% year-on-year.
Health care saw 46,000 job openings in December with gains focused on home health care services (+15,000), nursing and care facilities (+14,000) and hospitals (+12,000). Healthcare added an average of 57,000 jobs per month in 2024, equal to the monthly average in 2023.
TOP COMPANIES FOR REMOTE WORK IN 2025 REVEALED WITH SOME PAYING OVER $100,000
The retail sector added 43,000 in December after shedding 29,000 jobs in November. Last month’s gains were focused on retail clothing, footwear and jewelry (+23,000), general merchandise (+13,000) and health and personal care (+7,000). Retail trade lost jobs in construction materials and garden equipment (-11,000).
The government created 33,000 jobs in December, slightly lower than the monthly average for 2024 of 37,000 jobs per month. Last year saw slower growth in government jobs than in 2023, when the monthly average increase was 59,000 jobs.
Social assistance hiring rose by 23,000 last month, most of which was in individual and family services (+17,000). The sector added an average of 18,000 jobs per month in 2024, slightly lower than the average of 23,000 in 2023.
The labor force participation rate was unchanged at 62.5%, unchanged from a month ago, and remained in a narrow range of 62.5% to 62.7% as of December 2023.
The number of people considered to be long-term unemployed, defined as being out of work for 27 weeks or more, was little changed in December to 1.6 million, but was up 278,000 from a year earlier. Last month, the long-term unemployed accounted for 22.4 percent of all unemployed persons.
FED MINUTES SHOW POLICY MAKERS SEE IMMIGRATION, TARIFF CHANGES CREATING INFLATION UNCERTAINTY
The December jobs report comes as the Federal Reserve is scheduled to hold its next meeting in late January to discuss a potential rate cut. Fed Chairman Jerome Powell signaled after the last cut of 25 basis points in December that policymakers could slow the pace of rate changes based on incoming labor market and inflation data.
“A surprisingly strong jobs report certainly won’t make the Fed less hawkish,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. “All eyes will now turn to next week’s inflation data, but even a surprise in those numbers is unlikely to be enough for the Fed to cut rates anytime soon.”
CLICK HERE TO SET FOX BUSINESS IN CRETE
Market expectations that the Fed will keep rates steady at the January session were boosted by the December jobs report. The probability that the Fed will keep its target for benchmark federal funds in a range of 4.25% to 4.5% rose to 97.3% on Friday, up from 93.6% a day earlier.
This is a developing story. Check again for updates.
