by Patrick Glynn
The United States economy added 256,000 jobs in December according to the Bureau of Labor Statistics, closing out a strong year in job gains. If the number holds against future revisions, it’s the exact same number of job gains the economy saw to start the year in January.
This past year was the year employers and economists expected a contraction in the job market as the Federal Reserve began to cut interest rates. While inflation has moderated in the mid-2% range, job gains don’t seem to have been affected. Overall in 2024, the economy averaged a net of 177,000 job additions per month—resulting in over two million job gains across the year. While inflation ticked above 4% for the first time since November 2021, many economists credited that to a growth in the total available job market and bulk layoffs.
In December, the BLS said job gains occurred in these primary industries:
- Healthcare (+46,000)
- Retail (+43,000)
- Leisure & hospitality (+43,000)
- Government (+33,000)
- Social assistance (+23,000)
“We think that today’s report all but guarantees that the Federal Reserve won’t even consider lowering interest rates again until at least June,” Matthew Ryan, the head of market strategy at financial services firm Ebury, the New York Times reports.
Some other key economic data from the previous month include:
- Wages rose 0.3% in December and 3.9% year-over-year .
- Key inflation metrics show continued stabilization in inflation, but still remain above the Fed’s key target of 2%. (PCE was reported at 2.4%, and CPE was reported at 2.7% in December.)
- The private sector added 122,000 jobs in December, according to ADP. Their chief economist described job gains in 2024 as “downshifting” from previous years.
by Alexandra Woodford 
