Cameroon timber
Government employment continued its upward trend, adding 33,000 jobs in December, bolstered by state government hiring (+10,000). However, the sector’s monthly average growth of 37,000 jobs in 2024 trailed the 59,000 average recorded in 2023.
Retail Trade Rebounds After November Decline
Retail trade employment rose by 43,000 in December, recovering from a 29,000-job loss in November. Gains were concentrated in clothing, accessory, and shoe retailers (+23,000), general merchandise retailers (+13,000), and health and personal care stores (+7,000). Despite this boost, retail employment remained flat for the year, reflecting slower consumer activity compared to prior periods.
Wages and Workweek Remain Steady
Average hourly earnings for private nonfarm payroll employees increased by 0.3% in December, reaching $35.69. This brought the annual wage growth to 3.9%, indicating moderate but consistent upward pressure on wages. Meanwhile, the average workweek held steady at 34.3 hours for the fifth consecutive month, signaling stable labor demand.
Broader Labor Market Trends Hold Firm
Unemployment remained unchanged at 4.1%, with 6.9 million Americans unemployed. Notable improvements were observed among White workers, whose jobless rate edged down to 3.6%. Long-term unemployment stayed at 1.6 million, accounting for 22.4% of the unemployed, highlighting ongoing challenges for this group.
The labor force participation rate and employment-population ratio, at 62.5% and 60.0%, respectively, showed no significant movement. The number of individuals working part-time for economic reasons also remained unchanged at 4.4 million.
Market Outlook: Moderate Growth with Persistent Challenges
The stronger-than-expected payroll increase suggests continued resilience in the U.S. labor market. However, slower gains in sectors like leisure and hospitality, and unchanged long-term unemployment figures, signal lingering structural challenges. While wage growth and steady employment gains support a bullish short-term view, ongoing stability in unemployment and participation rates may limit substantial market momentum.