The U.S. economy generated 216,000 jobs in December 2023, outpacing expectations and sending a strong signal of a safe landing.
Total nonfarm payroll employment came in well ahead of the Dow Jones’ projected figure of 170,000 jobs created, according to the Bureau of Labor Statistics. December’s unemployment rate of 3.7% also beat the expected figure of 3.8%.
The report capped another strong year for the U.S. labor force in 2023. The year saw 2.7 million in total job gains, down from 4.8 million in 2022 but still a solid turnaround from the Covid-19 pandemic years.
“Jobs growth remains as resilient as ever, validating growing skepticism that the economy will be ready for policy rate cuts as early as March,” Seema Shah, chief global strategist at Principal Asset Management, told CNBC. “Indeed, the recent run of labor market data generally points in one direction: strength.”
That strength has analysts optimistic that the Federal Reserve’s long-running battle against inflation is close to winding down, and that the U.S. can avoid a recession in 2024.
