Bureau of Labor Statistics quarterly employment report

US Adds 256,000 Jobs in December, Exceeding Expectations; Unemployment Falls to 4.1%

Jan 10, 2025, 01:38 PM

The US economy added 256,000 jobs in December, significantly exceeding economists' expectations of 160,000 and marking the highest increase since May 2024. The unemployment rate fell to 4.1% from 4.2%, reaching a three-year low, according to data released by the Bureau of Labor Statistics. Private nonfarm payrolls increased by 223,000, surpassing the expected 135,000. Manufacturing payrolls declined by 13,000, contrary to expectations of a 5,000 increase. Average hourly earnings rose 0.3% month-over-month, in line with forecasts, and increased 3.9% year-over-year, slightly below the anticipated 4.0%. Wage growth continued to outpace inflation, which stood at 2.7% for the past year. The labor force participation rate remained steady at 62.5%, and average weekly hours held at 34.3. Despite the strong job growth, revisions for October and November reduced payroll gains by a net 8,000 jobs. Overall, the US added 2.2 million jobs in 2024, matching the growth seen in 2018.