The US job market ended 2023 with a robust expansion, adding 216,000 new jobs by the end of December, a figure that surpassed all expectations and reflected a healthy economy characterized by balanced job growth, high wages, and decreasing inflation rates. This significant growth, as reported by JPMorgan, outstripped the forecasts made by numerous economists, signaling a much stronger labor market than anticipated.
Shawn Snyder, an International Investment economic theorist for JPMorgan, stated that the job market remains strong, despite several indicators suggesting a potential decline. "The labor market remains in solid shape with the U.S. economy adding 216,000 jobs in December," Snyder commented.
Economic Strength Highlighted in December 2023 Job Gains
While hiring saw a slowdown in recent months, including October and November, the year 2023 witnessed the addition of 2.7 million jobs, averaging over 220,000 jobs per month, The Guardian reported. This rate, as reported, is lower than the 2022 increase of 4.7, but significantly higher than the years following the COVID health crisis.
The increase achieved in 2023 was not only significant in the context of recent years, but also when compared historically. As per the aforementioned report, the job growth in 2023 ranks as one of the most substantial since 2010, marking it as the fifth most robust year for job growth in over two decades. Despite this impressive performance, experts suggest a cautious outlook, anticipating potential fluctuations in the labor market.
Expanding Job Growth Across Varied Fields
In December 2023, sectors like government, social assistance, and education led job gains. The government sector notably added more than 50,000 jobs in December alone. On average, it contributed 56,000 jobs per month throughout 2023, more than doubling the average monthly gain of 23,000 in 2022. In the healthcare sector, job growth was evident with an addition of 38,000 jobs in December, with an average monthly increase of 55,000 in 2023, compared to 46,000 in 2022. These statistics demonstrate significant sector-specific growth patterns in the U.S. job market.
Hiring in social assistance increased by over 20,000 in December, while construction jobs rose by 17,000. However, sectors like warehousing and transportation saw job losses. The leisure and hospitality industry added approximately 40,000 jobs, close to the number in the previous month. The industry sector averaged 39,000 job additions per month in 2023, less than half the 2022s 88,000 jobs monthly average. Employment also grew in retail, manufacturing, and business services.
A slight wage increase was also noticed last month. According to the report, average hourly earnings, a key inflation indicator, rose by 0.4% to $34.27. The number of Americans seeking jobs, on the other side, rose by 514,000 in 2023, reaching 5.7 million in December.