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.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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