Strong Job Growth Across Multiple Sectors Boosts US Economy
The latest job report has brought welcome news to the US economy, with significant gains across various sectors. For the third consecutive month, healthcare and social assistance jobs saw the largest increases, adding 69,500 positions to payrolls, according to the Bureau of Labor Statistics. When including private education, this sector’s growth would have risen by 80,000.
Retail Trade Sees Sharp Turnaround
Retail trade, which had experienced steep losses in November, made a remarkable comeback in December, adding 43,400 jobs. This growth was driven by employment increases across key categories, including clothing, clothing accessories, shoe, and jewelry retailers, which saw an increase of 23,000 positions. General merchandise retailers and health- and personal-care retailers also grew by 13,000 and 7,000 jobs, respectively.
Government Jobs and Leisure and Hospitality Round Out Top Four
Government jobs posted growth of 33,000 in December, while leisure and hospitality saw an increase of 43,000 jobs. These gains suggest a broadening of job growth beyond government and healthcare, which had previously dominated.
Manufacturing Sees Decline, While Professional and Business Services Shine
In contrast to the strength in retail trade, manufacturing led the declines for December, losing 13,000 jobs. Mining and logging, and wholesale trade also reversed course last month from November. However, professional and business services, plus financial activities continued to be bright spots, adding jobs in December.
Experts Weigh In on Job Growth
According to Julia Pollak, ZipRecruiter’s chief economist, “Recently, job growth has been very narrowly concentrated in government and healthcare… Now, it seems like perhaps it’s broadening out.” Pollak also noted that retailers are more upbeat on 2025, and that the housing market may see more movement soon.
What’s Next for the US Economy?
The latest job report suggests that a recovery may be taking hold, driven by improvements in total vehicle sales, big-ticket purchases, and businesses buying vehicles. As the labor market continues to evolve, it will be important to monitor these trends and their impact on the US economy.
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