Updated Jan 10, 2025 - Business
U.S. labor market ends 2024 with a bang, adding 256,000 jobs
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The U.S. economy added 256,000 jobs in the final month of 2024, while the unemployment rate ticked down to 4.1%, the Labor Department said on Friday.
Why it matters: Hiring unexpectedly roared in December, capping a year of resilient labor market conditions that defied naysayers and kept the economy humming.
- The report is being watched closely by Federal Reserve officials. Friday's strong figures will likely support expectations that the central bank might hold interest rates steady later this month, as the labor market shows few signs of slowing down.
By the numbers: The number is well above the roughly 155,000 jobs economists anticipated were added last month.
- In terms of revisions, the government said there were 212,000 payrolls in November — 15,000 fewer jobs than initially forecast.
- Meanwhile, jobs growth in October was revised slightly higher by 7,000 jobs to 43,000 payrolls.
What to watch: Jobs growth has held up, without the much-feared surge in layoffs, raising prospects that the economy can achieve a soft landing.
- But it's no guarantee that will continue. Inflation progress has stalled out, prompting many Fed officials to roll back how much the central bank anticipates lowering rates this year.
- Some Fed officials fear inflation could flare up again if President-elect Trump implements aggressive trade and deportation policies.
Editor's note: This story was updated with a new chart.
Go deeper: Trump jolts Fed outlook
