Payrolls Continued to Grow in December
NEW YORK, Jan. 5, 2024 /PRNewswire/ -- Today's jobs report revealed that the labor market continued its growth in December, adding 216,000 persons to nonfarm payrolls. However, with downward revisions to both October and November data (cumulatively −71,000), the three-month average job growth declined to 165,000—well below the start of 2023, when monthly job growth was 312,000 (Chart 1). The softer trend in job gains align with earlier data showing companies are pulling back on hiring as interest rate increases have raised the cost of capital and slowed the economy.
- As we continue to anticipate a short and shallow recession later this year, hiring will likely continue to slow going forward.
- The anticipated weakness in the labor market will pale in comparison to that experienced during the Great Recession and the Pandemic.
- Job growth was strong in 2023, with 2.7 million nonfarm payroll gains for the year, but clearly slower than the 4.5 million additions in 2022.
- Moreover, hiring in the second half of 2023 was far less robust than in the first half.