US Economy Adds Over 200K Jobs in December 2023, Wages Up

The United States economy added over 200,000 jobs in December 2023, significantly exceeding expectations.

A report from the Labor Department showed that December’s job gain exceeded the 173,000 roles added in the previous month. The unemployment rate was unchanged at 3.7% — the 23rd straight month that joblessness has remained below 4%, the report said.

December’s job additions exceeded the economist-projected 170,000. December’s totals were also the most significant monthly employment gain since September 2023.

Average hourly wages rose 4.1% from a year earlier, up from a 4% gain in November. The number of people who either have a job or are looking for one fell to 62.5%, the lowest level since last February.

Employment continued growing in government, healthcare, social assistance, and construction, while transportation and warehousing lost jobs. However, the number of people holding part-time jobs was steady at 4.2 million. According to the report, these same people would have preferred to work full time, but their hours were reduced or they could not find full-time jobs.

Average hourly earnings — a key measure of inflation — increased 15 cents, or 0.4% for the month, to $34.27. Over the past 12 months, hourly earnings are up 4.1%, the report stated.

“American workers’ wages and wealth are higher now than before the pandemic began, adjusting for inflation,” United States President Joe Biden said in a statement on Friday. “I know that some prices are still too high for too many Americans, and I am doing everything in my power to lower everyday costs for hard-working Americans—from bringing down the price of insulin, prescription drugs, and energy, to addressing hidden junk fees companies use to rip you off, to calling on large corporations to pass on savings to consumers as their costs moderate.”

Biden also stated that he would not stop fighting for American workers and families. He understands that the overall cost of living is still “too high” for many Americans.