In December 2024, the US economy saw a significant boost with the addition of 256,000 jobs, marking the highest gain in nine months. This figure exceeded expectations of 160,000 new jobs and surpassed November’s downwardly revised increase of 212,000. Additionally, figures for October and November were adjusted, with a combined reduction of 8,000 jobs in those months. Despite the revisions, the overall trend points to a resilient labor market.

Employment Gains in Key Sectors

The December job growth was widespread, with notable increases in several sectors. Health care led the way, adding 46,000 jobs, followed by government with 33,000 and social assistance, which gained 23,000 jobs. Retail trade saw a rebound, adding 43,000 jobs after losing 29,000 in November. Retail growth was largely driven by clothing, shoe, and jewelry stores, as well as general merchandise and health-related retailers. These gains reflect the ongoing demand across various industries.

Manufacturing Faces a Decline

While many sectors experienced growth, manufacturing saw a slight setback, losing 13,000 jobs in December. This decline contrasts with the overall positive employment trend in other areas of the economy. Despite the loss in manufacturing, the broad job growth across other sectors suggests that the labor market remains strong and adaptable, even amidst sector-specific downturns.

Read More: US Retail Sales Show Robust Growth in November 2024

Year-End Review: Strong but Slower Growth in 2024

Looking at the full year of 2024, payroll employment increased by 2.2 million, averaging 186,000 jobs per month. While this is a slower pace compared to 2023, which saw an average monthly gain of 251,000 jobs, the data continues to indicate a stable and strong labor market. The overall slowdown in job growth is not seen as a cause for concern but rather a natural cooling after the rapid expansion in previous years.

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