December Jobs Report: U.S. Adds 256,000 Jobs

The U.S. labor market closed out 2024 on a strong note, adding 256,000 jobs in December, marking a significant rebound from November’s revised 212,000 jobs.

Despite earlier concerns about economic cooling, the December surge underscores resilience in key sectors, including healthcare, government, and retail trade.

The unemployment rate remained steady at 4.1%, unchanged for the fifth consecutive month, indicating stability in overall labor market conditions.

Is the U.S. Job Market Growing?

December’s strong job gains highlight robust growth across healthcare, government, and retail trade, with a particularly notable rebound in retail following losses in November.

While the unemployment rate held steady, other indicators, such as long-term unemployment and part-time employment for economic reasons, showed little change, reflecting ongoing challenges for certain groups within the labor market. The labor force participation rate remained static, indicating a plateau in overall workforce engagement.

As the economy heads into 2025, sustained job growth will depend on maintaining momentum in these critical sectors and addressing disparities across demographic groups.

U.S. Unemployment Rates by Group

• Adult women: 3.8% (down from 3.9%)
• Adult men: 3.7% (down from 3.9%)
• Teenagers: 12.4% (down from 13.2%)
• Whites: 3.6% (down from 3.8%)
• Blacks: 6.1% (down from 6.4%)
• Asians: 3.5% (down from 3.8%)
• Hispanics: 5.1% (unchanged)

Key Employment Statistics for December 2024

• The number of long-term unemployed (jobless for 27 weeks or more) held steady at 1.6 million, accounting for 22.4% of the unemployed, a slight improvement from November’s 23.2%.
• Part-time employment for economic reasons decreased slightly to 4.4 million, compared to 4.5 million in November.
• Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents to $35.69, marking a year-over-year increase of 3.9%.

Sectors with Notable Job Trends in December

Healthcare

Healthcare added 46,000 jobs in December, continuing its strong growth across key areas.

Notable gains included 15,000 jobs in home health care services, 14,000 in nursing and residential care facilities, and 12,000 in hospitals.

Retail Trade

Retail rebounded in December, adding 43,000 jobs and recovering from November’s decline.

Growth was driven by significant increases in clothing, accessories, and jewelry retailers (+23,000) and general merchandise retailers (+13,000).

However, the sector saw continued losses in building material and garden equipment dealers (-11,000).

Government

Government employment grew by 33,000 in December, aligning with the sector’s steady monthly average throughout 2024.

The majority of these gains came from state government, which added 10,000 jobs, reflecting continued demand for public sector roles and services.

December Jobs Report Summary

December’s strong job growth of 256,000 positions capped off a year of steady but slower gains compared to 2023.

Healthcare, retail, and government drove December’s growth, with retail bouncing back from a November downturn.

Revisions for October and November indicate slightly weaker gains than initially reported, lowering the combined totals by 8,000 jobs.

While the unemployment rate held at 4.1%, challenges remain, including stagnant labor force participation and persistent long-term unemployment.

However, the December figures provide a solid foundation for optimism as the labor market heads into 2025, with an eye on sustaining growth and addressing inequalities.