WASHINGTON - The United States labor market exhibited robust growth in December, adding 216,000 nonfarm jobs, surpassing expectations and signaling economic resilience. Despite the surge in job creation, the unemployment rate held steady at 3.7%, according to the latest data. The workforce saw a slight decline in size, with the labor participation rate dipping to 62.5%.
The employment gains were broad-based, with notable increases in sectors like health care, government, construction, and leisure. These sectors have contributed significantly to the job market's expansion, reflecting ongoing demand for labor in key areas of the economy.
In addition to job growth, average hourly earnings rose by 0.4% compared to the previous month. This uptick in wages is a positive sign for consumer spending, which is a critical driver of the US economy.
Financial markets responded to the strong job report, with Treasury yields climbing as investors anticipated the impact of the labor market data on the Federal Reserve's monetary policy. Simultaneously, US stock futures experienced a downturn as the robust employment numbers diminished the likelihood of a Fed rate cut in March. The steady job growth coupled with stable inflation rates suggests that the central bank may maintain its current policy stance.
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