In December jobs, and hiring for positions in bars and restaurants increased, which helped to improve employment numbers.
Stronger than anticipated US job growth was recorded in December, helped by a spike in hiring at bars and restaurants.
The Labor Department reported Friday that employers added 223,000 jobs in December, exceeding the 200,000 US jobs expected by Refinitiv economists. The lowest month for employment creation since December 2020, it still represents a minor slowdown from the upwardly revised gain of 256,000 in November. Meanwhile, the jobless rate unexpectedly dropped to 3.5%, a level not seen in five decades.
According to Bill Adams, chief economist of Comerica Bank, “the labor market was still tight at the end of 2022, but the quality of jobs available to American workers has decreased.” “Employers in the technology, finance, and industrial sectors are laying off employees, but recruiting is still going on in lower-paying sectors like leisure and healthcare,”
US JOB GROWTH COOLS SLIGHTLY IN DECEMBER AS THE ECONOMY ADDS 223,000 NEW POSITIONS
Despite the fact that US jobs growth last month was widespread, the leisure and hospitality industry, which was the hardest hit by the COVID-19 outbreak, took the lead in hiring an additional 67,000 employees. The majority of the gains came from the employment of bars and restaurants, which increased by 26,300 in December. Amusement, gaming, and recreational facilities hired 24,500 new employees, and hotel payrolls increased by 10,000.
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The number of people employed in the leisure and hospitality sector is still 932,000, or 5.5%, below its pre-pandemic levels.
Payrolls in the healthcare sector increased by 54,700 in December, making it the second-largest growth sector. The industry as a whole experienced a significant increase. While home healthcare providers experienced a payroll rise of 10,800, hospitals added 15,700 new employees. Nursing homes employed 5,700 people, while doctor’s offices acquired 12,300 new jobs. In 2022, the sector added 49,000 jobs monthly on average.
The construction industry, which added 28,000 jobs in December, was another source of new employment. Building construction (8,900) and specialty trade contractors had significant hiring increases within the sector (16,600).
GET FOX BUSINESS ON THE GO BY CLICKING HERE Other sectors had increases in employment as well last month, including social assistance (19,700), wholesale trade (12,100), retail trade (9,000), manufacturing (8,000), and financial activities (5,000).
These growths assisted in offsetting December’s 6,000 decreases in professional and business services. The losses were caused by a reduction of 35,000 temporary help services and a reduction of 28,600 administrative and support services. Gains in management and technical consulting services, computer system design, and office support services more than made up for those losses.