In a big surprise for economists, the U.S. economy added 256,000 jobs in December, dropping the unemployment rate to 4.1%. The consensus estimate on December job creation was around 155,000.
The monthly report from the Bureau of Labor Statistics shows the healthcare industry did most of the hiring last month. Healthcare added 46,000 jobs, with 15,000 new jobs in home health care services. Nursing and residential care facilities added 14,000 jobs while hospitals hired 12,000 people last month. The sector averaged 57,000 new jobs a month throughout 2024.
In something of a surprise retail stores added 43,000 jobs in December, following a loss of 29,000 jobs in November. In December, employment increased in clothing, clothing accessories, shoe, and jewelry retailers
One area of the retail sector lost ground, however. Retailers specializing in building materials and garden equipment lost 11,000 jobs.
Meanwhile, government employment continued to trend up in December, adding 33,000 jobs. That’s slightly below the 2024 average of 37,000 a month.
Employment in social assistance increased by 23,000 in December, mostly in individual and
family services, which added 17,000 jobs. That’s close to the 2024 monthly average.
Workers continued to earn a little more. In December, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $35.69. Over the past 12 months, average hourly earnings have increased by 3.9 percent.