The latest job report for December provides a comprehensive overview of the current state of employment in the United States. 

December’s Key Findings

The U.S. Bureau of Labor Statistics reveals that total nonfarm payroll employment increased by 256,000 jobs, showcasing a positive trend in job growth. The unemployment rate held steady at 4.1 percent, reflecting stability in the labor market.

Key sectors include:

• Healthcare
• Government
• Social Assistance
• Retail Trade
• Leisure & Hospitality

Sector-Specific Employment Trends

December’s employment landscape highlighted noteworthy shifts across the following sectors.

Healthcare

Healthcare led the charge with an addition of 46,000 jobs, notably in-home healthcare services and nursing facilities. 

Government

Government employment rose by 33,000 jobs, primarily in state government roles. 

Social Assistance

Social assistance followed with an increase of 23,000 jobs, especially in individual and family services.

Retail Trade

Retail trade rebounded significantly in December, adding 43,000 jobs after a loss in November. This growth was driven by strong consumer demand in clothing, accessories, and health and personal care retailers. 

Leisure & Hospitality

The leisure and hospitality sector also experienced modest growth, adding 43,000 jobs in December. 

Unemployment Rates 

The household survey data provides a detailed look at unemployment dynamics. The rate remained consistent at 4.1 percent, showing stability over recent months. Among major demographic groups, Caucasians saw a slight decrease in their unemployment rate, while rates for the Black population, Asians, and Hispanics remained stable.

The number of long-term unemployed, those without a job for 27 weeks or more, stayed around 1.6 million, an increase from the previous year. This group accounted for 22.4 percent of all unemployed individuals in December. The labor force participation rate held steady at 62.5 percent, within a narrow range since December 2023.

Part-time employment for economic reasons affected 4.4 million people, indicating challenges in finding full-time jobs. Additionally, the number of individuals not in the labor force but wanting a job was stable at 5.5 million. Among them, 1.6 million were marginally attached to the labor force, meaning they wanted work and had looked for a job within the past year but not in the four weeks preceding the survey. The number of discouraged workers, who believed no jobs were available for them, was unchanged at 480,000.

Wage Growth & Average Workweek

December saw a modest increase in average hourly earnings, rising by 10 cents to $35.69, reflecting a year-over-year growth of 3.9 percent. This suggests that while wages are increasing, they are doing so at a measured pace. The average hourly earnings for production and nonsupervisory employees saw a minor change, with earnings reaching $30.62.

The average workweek for private nonfarm payrolls remained steady at 34.3 hours, consistent over the past five months. In manufacturing, the workweek held firm at 40.0 hours, while overtime edged down slightly to 2.8 hours. For production and nonsupervisory employees, the average workweek also stayed constant at 33.7 hours.

Updates To Prior Months' Employment Data

Revisions to the job data from October and November provide a nuanced understanding of the overall employment trends. October's employment numbers were revised upward by 7,000 jobs, increasing the total job gains for the month to 43,000 jobs. Conversely, November's figures were adjusted downward by 15,000 jobs, bringing the revised total to 212,000 jobs. These combined revisions result in a net decrease of 8,000 jobs for the two months, which is relatively minor in the context of overall employment growth for 2024.

These revisions underscore the dynamic nature of employment data collection and reporting. Each month's initial estimates are based on preliminary data, which is later refined as more complete information becomes available from businesses and government agencies. This process ensures that the employment statistics are as accurate and reflective of real-world conditions as possible.

For further reading, check out our other blogs on topics related to the job market.

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