Economists polled by Reuters had forecast an increase of 160,000 jobs on payrolls, following a rise of 227,000 in November. Estimates ranged from 120,000 to 200,000 more jobs.
Hiring has slowed in the wake of sharp U.S. central bank rate hikes in 2022 and 2023. However, labor market resilience, largely reflecting historically low layoffs, is boosting the economy and supporting consumer spending. consumers for higher wages.
The economy is expanding at a pace well above the 1.8% that Federal Reserve officials consider the noninflationary growth rate. However, fears are growing that President-elect Donald Trump’s promises to impose or massively increase tariffs on imports and deport millions of undocumented immigrants could slow the momentum.
The concerns were evident in minutes of the Federal Reserve’s Dec. 17-18 monetary policy meeting released Wednesday, which noted that “most participants noted that … the Committee could take a cautious approach when considering” new cuts.
Average hourly wages rose 0.3% last month after rising 0.4% in November. In the 12 months to December, wages grew 3.9% after 4.0% in November.
