U.S. Economy Added 223,000 New Jobs As Labor Market Continues To Slow

The 223,000 jobs were created by the U.S. Economy jobs In December- down from 256,000 in NovemberAccording to the Bureau This is Labor Statistics (BLS). This was slightly higher than economists’ expectations of 200,000.

This It was the fifth consecutive month in which employment growth has slowed.

The The unemployment rate dropped to 3.5% last month, from 3.6% the previous month. This Also, it was lower than market estimates of 3.7%.

BLS noted that total nonfarm payrolls had changed by 5%. October November These were both reduced by 21,000 and 7K, respectively.

Average Hourly earnings decreased to 4.6 % year-over–year and rose by 0.3 percent month–over-month to $22.82. Average Weekly hours also fell to 34.3 The The labor force participation rate increased to 62.3 %.

In In total, the national economy created approximately 4.5 million jobs in 2022 compared to 6.7 million in 2020.

Employment With 67,000 new positions, leisure and hospitality led to significant gains. Health Care also rose by 55,000, followed closely by construction (28,000), and social assistance (20,000. There There was little movement in retail (9,000), manufacturing (8000), and mining (4,000).

The The number of long-term unemployment fell by 146,000 to 1 million The The number of part-time workers was flat at 3.9 million. However, the number of people who are not in the labor force but still want a job has dropped by 352,000 and fell to 5.2 millions.

In In addition, 8 million people work more than one job, an increase of 7.7 million from 2007. November.

Once There was again a divergence between household surveys and the establishment. The The headline number was given by establishment component, which surveys companies. But The household survey revealed that employment growth was just 136,000

“Today’s jobs report indicates that we’re still in a healthy market, especially as available job openings beat expectations, showing employer demand remains high. However, there have been early signs of shifting, like the increase in part-time work and decrease in labor force participation. Jobseeker activity through December also remained on the cooler side,” Cody HarkerHead of Data Insights From a recruitment marketing firm Bayard AdvertisingIn a note

In Pre-market trading saw investors respond favorably to the December jobs report, with the leading benchmark indexes recording modest gains on smaller-than-expected wage gains.

According To Jan SzilagyiCo-founder and CEO of an investment firm Toggle AI, the most recent job numbers show that “the economy is slowing, but not slowing enough.”

“Pace of job growth is still way above the speed limit so for now, the economy isn’t anywhere near the kind of ‘benign job growth’ the Fed wants to see,” He said.

“For stocks, this is a pretty neutral report: markets already know the Fed is relatively hawkish and this isn’t going to change anyone’s mind.”

 Latest Developments In the USA Labor Market

According To the ADP National Employment Report (pdf), the private sector created 235,000 jobs in DecemberMarket estimates of 150,000 surpassed it. This This was also higher that the upwardly revised 182,000 position in November.

Interestingly It is enough that small- and mid-sized businesses were a major contributor to all the employment growth in DecemberThe latter created 195,000 and 191,000 jobs. Large businesses lost 151,000 positions.

OverallADP reported that the average monthly payroll growth for 2022 was close to 301,000 jobs. In In addition, the annual pay was lowered to 7.3 percent in comparison to the previous year. DecemberThis is down from 7.6 per cent in the previous month.

“The labor market is strong but fragmented, with hiring varying sharply by industry and establishment size. Business segments that hired aggressively in the first half of 2022 have slowed hiring and in some cases cut jobs in the last month of the year,” Nela RichardsonADP chief economist, in an announcement

MeanwhileEmployers based in the United States announced 43,651 job losses in December Take a look at the 76,835 Inch Drop November. This This year’s second-highest figure, representing a rise of 129 percent compared to the same time last year. In Employers announced plans to reduce 363,824 jobs in 2022, an increase of 13 percent over 2021.

The Tech sector saw the greatest reductions in pay, with 97 171 job cuts. The The automotive industry also lost nearly 31,000 jobs last fiscal year.

“The overall economy is still creating jobs, though employers appear to be actively planning for a downturn. Hiring has slowed as companies take a cautious approach entering 2023,” Andrew Challenger, Senior Vice President of Challenger, Gray & ChristmasIn a statement

Department This is Labor Data (pdf) found that the number of Americans For the week ending in February, 204,000 people applied for unemployment benefits for the first time. December 31, below economists’ expectations of 225,000. This was down from the previous week’s print of 223,000.

Continuing The number of jobless claims fell from 1.718 to 1.694 millions. The The four-week average (which removes week to week volatility) fell from 220.500 to 213,750.

These After the BLS, numbers were released reported In 2010, there were 10.458 million job openings. November, which is significantly higher than the market forecasts at 10 million. The Print was slightly lower than in 10.512 millions October.

Job The number of quits increased to 4.173million, an increase of 4.047 million. However, the number and percentage of hires decreased by 56,000 to 6.12 million.

Does This means the U.S. labour market will remain strong in 2023. Not quite, says Eliza WingerAn economist at Bloomberg Economics.

“Layoff announcements were contained to a limited number of sectors in 2022, but we expect a broader cooling of the labor market in 2H 2023, when a recession will likely hit,” she wrote.

Andrew Moran Since more than a decade, he has written about finance, economics and business. He Is the author “The War on Cash.”

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