US Unemployment Rate Drops to 4.1% in December

The U.S. job market showed signs of strength in December with 256,000 new jobs added, pushing the unemployment rate down to 4.1%, contrary to expectations of a higher rate. The tech sector contributed positively, adding 7,000 jobs and lowering the IT unemployment rate to 2%, its lowest since November 2023. However, job cuts announced in December totaled 38,792, a 33% decrease from November but an 11% increase compared to December 2023, with the tech sector leading in cuts. Despite the robust job growth, concerns arise regarding high mortgage rates and their impact on homebuyers. Additionally, the unemployment rate for Black women fell to 5.4%, signaling progress amidst mixed economic signals. Overall, while job creation remains strong, the landscape indicates a tightening of hiring plans and potential challenges ahead for the economy.