The Bureau of Labor Statistics has released its December 2024 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- Strong Job Growth: Nonfarm payroll employment increased by 256,000 in December, with notable gains in health care, government, and social assistance.
- Wage Growth: Average hourly earnings rose by 0.3% in December, marking a 3.9% increase over the past year, bringing the average to $35.69.
The good news is:
- Steady Unemployment Rate: The unemployment rate remained relatively unchanged at 4.1%, with 6.9 million unemployed individuals, reflecting stability in the labor market.
- Long-Term Unemployed Levels Off: While still elevated compared to last year, the number of long-term unemployed (1.6 million) showed no significant month-to-month increase.
The bad news is:
- Slower Annual Job Growth: Total payroll employment rose by 2.2 million in 2024, averaging 186,000 jobs per month—significantly lower than the 3.0 million jobs added in 2023.
- Flat Labor Force Participation: The labor force participation rate remained stagnant at 62.5%, showing no meaningful improvement over the year.
- Mixed Revisions to Prior Data: Revisions to October and November figures resulted in a net reduction of 8,000 jobs, slightly dampening previous optimism.