December Jobs Report Overview
US employers added 256,000 jobs in December, far exceeding expectations. This figure outpaced November’s 227,000 hires and signaled robust labor market performance.
Annual Job Growth Trends
In 2024, the US added 2.2 million jobs, 780,000 fewer than 2023. The slowdown reflected a shift from post-pandemic recovery hiring.
Unemployment and Economic Signals
December’s unemployment rate dipped to 4.1%, lower than projections. This indicated a strong economy with less immediate need for rate cuts.
Treasury Yields and Market Impact
Treasury yields rose after the report, adjusting to diminished rate cut expectations. The two-year yield climbed to 4.37%, while the 10-year yield hit 4.77%.
Dollar and Stock Market Reaction
The US dollar surged to a two-year high, reaching an index value of 109.98 before easing slightly. US stocks fell, with the Nasdaq Composite dropping 1% as traders reassessed Federal Reserve policy expectations.
Conclusion
The December jobs report highlighted the labor market’s resilience, but slower annual growth hinted at broader economic shifts in 2024.
Key Highlights
- US payrolls for December hit 256,000, surpassing the 156,000 forecast.
- Total job growth for 2024 reached 2.2 million, slower than 2023’s pace.
- Unemployment dropped to 4.1%, below the 4.2% estimate.
