The US Job Market saw strong expansion at the end of 2024, adding 256,000 jobs.
Total nonfarm payroll rose by 256,000, up from 227,000 in November, according to the US Bureau of Labor Statistics.
Key sectors like healthcare, government, and social assistance drove employment growth, alongside a rebound in retail trade jobs.
Outgoing President Joe Biden said:
“With today’s report of 256,000 new jobs in December, we have created over 16.6 million jobs over the course of my administration and this is the only administration in history to have created jobs every single month.
“Although I inherited the worst economic crisis in decades with unemployment above 6% when I took office, we’ve had the lowest average unemployment rate of any administration in 50 years with unemployment at 4.1% as I leave.
“Although forecasts were projecting it would take years to achieve a full recovery, we have had the strongest growth and employment creation of any advanced country, brought inflation back down, and achieved the soft landing that few thought was possible.
“My administration has achieved record high employment rates for working age women and the lowest black-white unemployment gap on record. Incomes are up almost $4,000 more than prices.”
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Industries Driving December Employment Growth
Healthcare
- Added 46,000 jobs, driven by:
- Home health care services: +15,000
- Nursing and residential care facilities: +14,000
- Hospitals: +12,000
Retail Trade
- Retail rebounded with 43,000 jobs, following a loss of 29,000 in November.
- Clothing and accessories: +23,000
- General merchandise: +13,000
- Health and personal care: +7,000
- Decline in building materials: -11,000
Government and Social Assistance
- Government jobs increased by 33,000, with state government contributing +10,000.
- Social assistance added 23,000 positions, primarily in individual and family services (+17,000).
Leisure and Hospitality
- Modest gains of 43,000 jobs in December, although 2024 growth averaged 24,000 jobs per month, halving 2023’s pace.
Stagnant Sectors
Employment in sectors like mining, manufacturing, wholesale trade, and financial activities saw little change.
Wages and Hours Worked
- Average hourly earnings rose by $0.10 to $35.69 in December, a year-over-year increase of 3.9%.
- The Average workweek remained consistent at 34.3 hours, unchanged since August.
Year-End Revisions
The Bureau revised job growth data for October and November:
- October: Revised up by 7,000 jobs (from +36,000 to +43,000).
- November: Revised down by 15,000 jobs (from +227,000 to +212,000).
Reflecting on 2024
Over the year, total nonfarm payrolls added 2.2 million jobs, averaging 186,000 per month.
This marked a slowdown from 2023’s 3.0 million jobs, which averaged 251,000 monthly.
Unemployment Rate Steady
- The unemployment rate held at 4.1%, unchanged for the past seven months.
- 6.9 million people remained unemployed in December, showing minimal change from prior months.
- Specific demographic unemployment rates:
- Whites: 3.6% (slight decline)
- Blacks: 6.1%
- Hispanics: 5.1%
- Asians: 3.5%
- Teenagers: 12.4%
Among unemployed people:
- Permanent job losers dropped by 164,000 to 1.7 million.
- Long-term unemployment (27 weeks or more) was stable at 1.6 million, accounting for 22.4% of total unemployment.
Labor Force Participation
- The labor force participation rate remained steady at 62.5%, unchanged throughout the year.
- The employment-population ratio stayed at 60.0%, with little year-over-year fluctuation.
- Part-time workers for economic reasons numbered 4.4 million, showing minimal change.
Expert Analysis
Alex McDowell, Sales & Operations Director for WhatJobs.com, said:
“The December jobs report underscores the resilience of the U.S. labor market, with strong growth in key sectors like healthcare and retail.
“At WhatJobs, we’re seeing increased demand for skilled professionals across industries, reflecting the positive momentum in hiring as we move into 2025.”
What Will Trump Do For Business?
As President Donald Trump prepares for a second term, business leaders and investors are reassessing their strategies in anticipation of potential policy shifts.
Many CEOs expect a return to pro-business tax cuts and deregulation, which could enhance profitability and stimulate investment across various sectors.
However, concerns persist regarding market volatility, particularly due to Trump’s “America First” trade policies that may strain international relations and disrupt supply chains.
Trade policies remain a focal point, with expectations of renewed tariffs, especially targeting imports from China.
Such measures could increase production costs and intensify geopolitical tensions, compelling multinational companies to balance international partnerships with domestic priorities.
Additionally, Trump’s emphasis on domestic energy production is anticipated to benefit the oil and gas industry, potentially slowing Environmental, Social, and Governance (ESG) initiatives.
In response, CEOs are proactively reassessing supply chains to mitigate tariff impacts, preparing for tax and trade policy shifts, and exploring growth opportunities in sectors aligned with Trump’s agenda, such as manufacturing and fossil fuels.
Investors exhibit cautious optimism, attracted by potential deregulation and tax cuts, yet wary of global market risks and the sustainability of long-term growth.
Industries poised to benefit include oil and gas, traditional manufacturing, and financial services, while sectors like renewable energy, tech companies dependent on global trade, and ESG-focused industries may face challenges.
To navigate the evolving political and economic landscape, business leaders are advised to engage in scenario planning, maintain agility, and strengthen domestic strategies to adapt to forthcoming changes.
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What to Watch in 2025?
The December jobs report highlights steady job market resilience despite a slower growth pace in 2024. Sectors like healthcare and retail showed strength, while long-term unemployment and stagnant participation rates remain areas to watch in 2025.
With consistent wage growth and stable unemployment rates, the labor market continues to provide opportunities for workers entering the new year.
