Although the unemployment rate was higher than at the beginning of the year, the labor market ended the year with 256,000 jobs added to the economy in December, according to CBS figures. facts Released Friday by the US Bureau of Labor Statistics (BLS).
Unemployment ended the year at 4.1%, compared to 4.2% the month before. The unemployment rate has hovered around 4.1% or 4.2% for the past seven months. The number of unemployed stood at 6.9 million in December.
Most of the job growth in December took place in the healthcare (+46,000 jobs), government (+33,000 jobs), retail (+43,000 jobs) and social security (+23,000 jobs) sectors.
The construction sector showed little change month-on-month, adding only 8,000 jobs. Residential construction has added 3,500 jobs as of November, while specialty housing contractors have added only 500 jobs.
The real estate and rental and leasing sectors gained only 3,200 jobs in December, while the real estate segment lost 1,700 jobs.
Economists believe that consumers and the Federal Reserve should be happy to see not only the strong job growth in December, but also that average wages increased 3.9% year over year, which is faster than the overall inflation rate.
“While higher prices have weighed on consumers’ minds, the fact that wages continue to rise faster than inflation suggests that many individuals and families – including potential homebuyers – are still relatively confident in their financial situation,” said Lisa Sturtevant, chief economist Clear MLSsaid a statement.
Sturtevant added that while wage growth is certainly good for the housing market, the precise impact it will have on housing markets will depend on where workers do those jobs.
“As more employers call workers back to the office full-time, potential homebuyers will have different priorities,” she said.
The Fed has indicated that inflation is expected to remain a concern through 2025.
“Proposed policies from the new administration, including those on tariffs and immigration, could have inflationary consequences, potentially leading to a slowdown in job growth,” Sturtevant said.
According to MBA Senior Vice President and Chief Economist Mike Fratantoni, the Fed will most likely suspend interest rate cuts as a result of the data.
“This will push mortgage rates up in the short term,” Fratantoni said.
