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.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
