US Labour Market Shows Hiring Pause as Productivity Reshapes Growth Outlook US jobs data showed that new jobs being created slowed sharply in December, reinforcing signs that businesses are holding back on hiring while unemployment levels remained broadly stable. This served to support expectations that the Federal Reserve will keep interest rates unchanged in January, while leaving the door open to rate cuts later in the year.
Figure 5. Unemployment Rate, Nonfarm Payroll Employment Source: Bureau of Labor Statistics) The latest Employment Situation Summary from the Bureau of Labour Statistics shows that non-farm payrolls rose by just 50,000 in December, down from a downwardly revised 56,000 in November. The consensus forecast was for jobs to grow by 60,000. The unemployment rate edged lower to 4.4 percent, signalling that layoffs remain limited despite slower hiring. Job gains were concentrated in a small number of sectors. Most of the increase came from areas that are less sensitive to economic cycles: ● ● ● ●
Private education and health care added 41,000 jobs. Leisure and hospitality increased by 47,000 jobs. Government employment rose by 13,000 jobs. Financial services added 7,000 jobs.
Outside these industries, hiring declined across much of the economy. Firms beyond education and health care contributed only 9,000 of the 50,000 jobs added in December.