U.S. hiring beats expectations in December as job market stays resilient

U.S. job growth unexpectedly surged in December 2023, with unemployment rate unchanged at 3.7%. Wage growth steady, Fed mulls interest rate path.

U.S. job growth surged unexpectedly in December, government data showed on January 5, wrapping up a solid year for the labor market even as voters remain gloomy about the economy ahead of November’s presidential election.

The world’s biggest economy added 216,000 jobs in the final month of 2023, said the Department of Labor, despite expectations of a slowdown from the prior month.

The unemployment rate was unchanged at 3.7%, holding at a historically low level and defying forecasts of an uptick.

These robust figures come as higher interest rates bite, after the Federal Reserve lifted the benchmark lending rate rapidly and held it at a high level to ease demand and rein in inflation.

They also add to optimism that the United States is achieving a so-called soft landing where inflation comes down without a significant downturn.

“This morning’s report confirms that 2023 was a great year for American workers,” said President Joe Biden.

While strong job creation continued as inflation fell, Biden conceded: “I know that some prices are still too high for too many Americans, and I am doing everything in my power to lower everyday costs.”