The US Bureau of Labor Statistics published “Summary of the employment situationThe December report on Friday and the findings “underscored that this is a strong economy,” Elyse Ausenbaugh, head of investment strategy at JP Morgan Wealth Management, said in a statement to entrepreneur.
The report showed the US economy added 256,000 new jobs in December, the most since March, while the unemployment rate fell slightly to 4.1%. The number of jobs added was above consensus expectations for a gain of 165,000, EY senior economist Lydia Boussour said. entrepreneur in a separate statement.
Employment rose in industries such as health care and retail, which added 46,000 jobs and 43,000 jobs, respectively, in December.
The unemployment rate has remained steady at either 4.1% or 4.2% for the past seven months, with 6.9 million people out of work in December. According to the report, the number of people who have been unemployed for at least six months is 1.6 million, up 278,000 from the same time last year.
The economy gained 2.2 million jobs overall in 2024, making it “more resilient than expected,” according to Boussour, but the gain was less than the 3 million jobs added in 2023.
Ausenbaugh said Friday's jobs report dimmed the prospect of a rate cut other several meetings of the Federal Open Market Committee (FOMC). The next meeting is on January 28 and 29.
“The data underscored that this is a strong economy that currently does not need significant additional policy easing to see its expansion continue,” Ausenbaugh said.
“The x-factors, of course, are the upcoming twists and turns related to trade policy, geopolitics and government efficiency,” she added.
Boussour's comments agreed with those of Ausenbaugh.
“Overall, this report should reassure the Fed that a pause in the rate-cutting cycle is appropriate,” Boussour said.