The U.S. labor market showed robust growth at the end of 2024, adding 256,000 jobs in December, as reported by the Bureau of Labor Statistics. The unemployment rate fell to a remarkably low 4.1%, signaling a resilient economy amid concerns over inflation and economic slowdown. The job gains were broad-based, with notable increases in industries such as healthcare, hospitality, and retail, where seasonal hiring boosted employment figures. ‘The jobs report reflects a strong economy, and that consumers continue to spend and businesses are hiring,’ said Michael Pearce, Senior U.S. Economist at Capital Economics. Markets reacted positively to the news, with a surge of 1.4% in the S&P 500 and the Dow Jones Industrial Average gaining 800 points. This momentum marks a significant recovery amid rising inflationary pressures and global economic uncertainties, with analysts pointing towards a potential interest rate hike by the Federal Reserve in early 2025 to combat inflation. The Consumer Price Index (CPI) is set to be released next week, which will be critical in shaping monetary policy moving forward. The latest job figures align with increasing retail sales, which saw a 0.8% rise in December, signaling a healthy consumer environment heading into the new year. As businesses continue to adapt post-pandemic, the labor market remains a critical focus for economists and policymakers alike.
US Labor Market Ends 2024 Strong with 256,000 Jobs Added in December
