US Labor Market Adds 256,000 Jobs in December

The U.S. labor market ended 2024 on a robust note, adding 256,000 jobs in December, far exceeding expectations of 150,000 and marking the strongest growth since March 2024. The unemployment rate dipped to 4.1%, down from 4.2%, reflecting a resilient economy that continues to defy rising interest rates. Job growth was particularly strong in health care, retail, and government sectors, while wage growth remained steady at 0.3% month-over-month, leading to a year-over-year increase of 3.9%. Despite the positive job figures, the Federal Reserve remains cautious about rate cuts, given recent inflation pressures. The labor force participation rate held steady at 62.5%, consistent with previous months, indicating stable employment trends. Overall, these figures highlight the economy's unexpected resilience amid challenges, reinforcing the need for careful monetary policy management.