A hiring sign is displayed at a grocery store in Arlington Heights, Ill., Tuesday, Dec. 27, 2022. America’s employers added a solid 223,000 jobs in December, evidence that the economy remains healthy yet also a sign that the Federal Reserve may still have to raise interest rates aggressively to slow growth and cool inflation. (AP Photo/Nam Y. Huh, File)
The latest jobs report is in, and once again it's looking good for workers: The U.S. economy added 223,000 jobs in December, and unemployment dropped to 3.5 percent from 3.6 percent, according to the latest numbers from the Bureau of Labor Statistics.
The gains cap off a strong year for the job market. Employers added 4.5 million positions in 2022, which is the second-best year since 1940 after 2021. The job growth held strong throughout the year despite an onslaught of Federal Reserve rate hikes aimed directly at lowering employment.
Fed Chair Jerome Powell recently stressed that the cost of services (as opposed to durable goods) will need to come down to tame inflation, and that services are more closely tied to wage and job growth. Translation: The Fed plans to raise rates until they raise the unemployment level.
However, the December report shows wage growth slowing, even as unemployment drops, and some economists are now arguing that a so-called "soft landing" is more likely.
"Today's payrolls report was nirvana for the bulls," said David Russell, vice president of market intelligence at TradeStation Group. "The Fed's latest worry has been the wage-price spiral, but this report shows just the opposite. Forget about glass half full. It could be more like three-quarters full. We could be looking right now at a soft landing."
Average hourly earnings were up 0.3 percent in December from the month before, down from a 0.4 percent increase in November. Wages were up 4.6 percent for the year, which is down significantly from a peak of 8.6 percent year-over-year in March.
Leisure and hospitality contributed the biggest share by sector to the job gains with 67,000 new positions. Health care added 55,000, and construction added 28,000 positions.
The labor participation rate, which tracks the number of working-age adults who are actively seeking employment, ticked up to 62.3 percent in December from 62.2 percent the month before.
The federal jobs report finishes a week of mixed signals from the jobs market. While aggregate numbers remain strong, a series of high-profile layoffs in the tech sector stoked fears that the economy overall is losing momentum and could be headed for a recession.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
