U.S. economy greatly surpasses economic expectation with 216,000 added jobs in December

The US economy soared in the fourth quarter of this year as according to the Bureau of Labor Statistics, The U.S. labor market added 216,000 jobs in December, higher than November’s gain of 173,000, closing out 2023 with a more robust labor market than economists expected.

According to Shawn Snyder, a global investment strategist for J.P. Morgan, ‘leading economic indicators continue to suggest that the pace of job growth should slow over the next couple of quarters, but thus far, the labor market hasn’t seemed to get the message.’

Government, health care, and leisure and hospitality led the month’s job gains. On average, the government added 56,000 jobs per month in 2023, more than double the average monthly gain of 23,000 in 2022. The economy added 38,000 jobs in the healthcare space. Job growth in health care averaged 55,000 per month in 2023, compared with the average monthly gain of 46,000 in 2022. Moreover, employment in social assistance, manufacturing, retail trade and professional and business services also added jobs.

Amidst inflationary pressures and an economic environment that sees costs of living increase, the rapid fall in unemployment is great news for the American population. It is a significant step towards fighting the economic slump induced by the COVID-19 pandemic.

Source: Smith, Talmon. J. NY Times. “U.S. Added 216,000 Jobs in December, Outpacing Forecasts”. https://www.nytimes.com/2024/01/05/business/economy/jobs-report-december-2023.html. 5th Jan, 2024. [Date accessed: 8th Jan, 2024].