US economy adds 216,000 jobs in December, far more than expected

US employers added 216,000 jobs in December, a surprisingly strong increase that fuels doubt as to when the Federal Reserve will begin cutting rates this year.

Last month’s payroll growth came in over November’s higher-than-expected 199,000 advance — and well ahead of the 170,000 economists expected, according to Refinitiv data.

The figure marks an average monthly payroll gain of 232,000 over the previous 12 months — a strong figure considering the economy was gripped with stubbornly high inflation and the highest borrowing rate Americans have seen in 22 years.

“It reinforces the notion that the Fed’s not going to be in a rush to cut rates.” former New York Fed President William Dudley told Bloomberg on Friday.

Dudley added that “the economy’s doing pretty well” and that “May is more likely” for the Fed to start cutting.

“They’ll need to see some signs that the economy is slowing,” Dudley said. “The wage trend for now is something that is likely concerning to policymakers.”