The Bureau of Labor Statistics reported today that the American economy added 223,000 jobs in the month of December as the unemployment rate fell to a historic low of 3.5% as more people entered the workforce and the Biden Administration recovery continued. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance sectors. The unemployment rate at 3.5% in December has remained in a narrow range of 3.5% to 3.7% since March. The number of unemployed persons was down to 5.7 million in December.
Nevertheless, the Federal Reserve seems determined to send the US economy into a deep recession. The Fed has done this in the past with reckless interest rate increases from an ideology that thinks it is good when people lose jobs to keep demand and inflation down. However, consider that during December, average hourly earnings for all employees on private non-farm payrolls rose by 9 cents, or a mere 0.3%, to $32.82. During the past 12 months, average hourly earnings have increased by 4.6%. In December, average hourly earnings of private-sector production and non-supervisory employees rose by 6 cents, or 0.2%, to $28.07. AutoInformed doesn’t consider the latest data as cause for inflationary worries, let alone more interest rate increases. (Autoinformed.com: Federal Reserve Chair Powell Says Inflation Remains Too High)
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“Since December 2021, the economy has added 4.5 million jobs, for a total of more than 10.7 million jobs since the President took office and the most jobs added in any two-year period on record. With significant gains in health care, leisure and hospitality, and construction jobs, we rounded out 2022 with more of the steady, stable growth that helped our workforce recover from the COVID pandemic and has empowered workers to take on new opportunities,” said US Secretary of Labor Marty Walsh.
Among the major worker groups, the unemployment rate for Whites fell to 3.0% in December. The jobless rates for adult men (3.1%), adult women (3.2%), teenagers (10.4%), Blacks (5.7%), Asians (2.4%), and Hispanics (4.1%) showed little or no change over the month.
The number of long-term unemployed (jobless for 27 weeks or more) declined by 146,000 to 1.1 million in December. This is down from 2.0 million a year earlier. The long-term unemployed accounted for 18.5% of all unemployed persons. The number of persons employed part time for economic reasons, at 3.9 million, changed little in December. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs.
The employment-population ratio increased by 0.2 percentage point over the month to 60.1%. The labor force participation rate was little changed at 62.3%. Both measures have shown little net change since early 2022. These measures are each 1.0 percentage point below their values in February 2020, prior to the coronavirus (COVID-19) pandemic.
Executive Summary
- Total non-farm payroll employment increased by 223,000 in December. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance. Payroll employment rose by 4.5 million in 2022 (an average monthly gain of 375,000), less than the increase of 6.7 million in 2021 (an average monthly gain of 562,000). (See table B-1.)
- In December, employment in leisure and hospitality rose by 67,000. Employment continued to trend up in food services and drinking places (+26,000); amusements, gambling, and recreation (+25,000); and accommodation (+10,000). Leisure and hospitality added an average of 79,000 jobs per month in 2022, substantially less than the average gain of 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 932,000, or 5.5%.
- Health care employment increased by 55,000 in December, with gains in ambulatory health care services (+30,000), hospitals (+16,000), and nursing and residential care facilities (+9,000). Job growth in health care averaged 49,000 per month in 2022, considerably above the 2021 average monthly gain of 9,000.
- Employment in construction increased by 28,000 in December, as specialty trade contractors added 17,000 jobs. Construction employment increased by an average of 19,000 per month in 2022, little different than the average of 16,000 per month in 2021.
- Social assistance added 20,000 jobs in December.
- Employment in individual and family services continued to trend up over the month (+10,000). Job growth in social assistance averaged 17,000 per month in 2022, compared with the 2021 average of 13,000 per month.
- Employment in the other services industry continued to trend up in December (+14,000). Monthly job growth in other services averaged 14,000 in 2022, lower than the average of 24,000 per month in 2021. Employment in other services is below its February 2020 level by 174,000, or 2.9%.
- In December, mining employment increased by 4,000, reflecting job growth in support activities for mining (+5,000). Since a recent low in February 2021, mining employment has grown by 104,000.
- Employment in retail trade changed little in December (+9,000). Job growth in retail trade averaged 16,000 per month in 2022, less than half the average growth of 35,000 per month in 2021.
- Over the month, employment in manufacturing changed little (+8,000), as job gains in durable goods (+24,000) were partially offset by losses in nondurable goods (-16,000). In 2022, manufacturing added an average of 32,000 jobs per month, little different than the average of 30,000 jobs per month in 2021.
- In December, employment in transportation and warehousing changed little (+5,000). Air transportation (+3,000) added jobs over the month, while employment continued to trend down in couriers and messengers (-4,000) and in warehousing and storage (-3,000). In 2022, average job growth in transportation and warehousing (+17,000) was about half the average job growth in 2021 (+36,000).
- In December, government employment was essentially unchanged (+3,000). Employment in state government education declined by 24,000, reflecting strike activity among university employees.
- Employment in professional and business services remained little changed in December (-6,000).
- Employment in temporary help services declined by 35,000 over the month and has fallen by 111,000 since July.
- Job growth in professional and business services averaged 50,000 per month in 2022, roughly half of the average of 94,000 per month in 2021.
- Over the month, employment showed little change in other major industries, including wholesale trade, information, and financial activities.
US December Unemployment at Record Low of 3.5%
The Bureau of Labor Statistics reported today that the American economy added 223,000 jobs in the month of December as the unemployment rate fell to a historic low of 3.5% as more people entered the workforce and the Biden Administration recovery continued. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance sectors. The unemployment rate at 3.5% in December has remained in a narrow range of 3.5% to 3.7% since March. The number of unemployed persons was down to 5.7 million in December.
Nevertheless, the Federal Reserve seems determined to send the US economy into a deep recession. The Fed has done this in the past with reckless interest rate increases from an ideology that thinks it is good when people lose jobs to keep demand and inflation down. However, consider that during December, average hourly earnings for all employees on private non-farm payrolls rose by 9 cents, or a mere 0.3%, to $32.82. During the past 12 months, average hourly earnings have increased by 4.6%. In December, average hourly earnings of private-sector production and non-supervisory employees rose by 6 cents, or 0.2%, to $28.07. AutoInformed doesn’t consider the latest data as cause for inflationary worries, let alone more interest rate increases. (Autoinformed.com: Federal Reserve Chair Powell Says Inflation Remains Too High)
Click on chart for more information.
“Since December 2021, the economy has added 4.5 million jobs, for a total of more than 10.7 million jobs since the President took office and the most jobs added in any two-year period on record. With significant gains in health care, leisure and hospitality, and construction jobs, we rounded out 2022 with more of the steady, stable growth that helped our workforce recover from the COVID pandemic and has empowered workers to take on new opportunities,” said US Secretary of Labor Marty Walsh.
Among the major worker groups, the unemployment rate for Whites fell to 3.0% in December. The jobless rates for adult men (3.1%), adult women (3.2%), teenagers (10.4%), Blacks (5.7%), Asians (2.4%), and Hispanics (4.1%) showed little or no change over the month.
The number of long-term unemployed (jobless for 27 weeks or more) declined by 146,000 to 1.1 million in December. This is down from 2.0 million a year earlier. The long-term unemployed accounted for 18.5% of all unemployed persons. The number of persons employed part time for economic reasons, at 3.9 million, changed little in December. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs.
The employment-population ratio increased by 0.2 percentage point over the month to 60.1%. The labor force participation rate was little changed at 62.3%. Both measures have shown little net change since early 2022. These measures are each 1.0 percentage point below their values in February 2020, prior to the coronavirus (COVID-19) pandemic.
Executive Summary