The U.S. economy added jobs at a solid clip in December, pushing the unemployment rate back to a pre-pandemic low of 3.5%.
A pedestrian passes a "Help Wanted" sign in the door of a hardware store in Cambridge, Massachusetts, U.S., July 8, 2022. REUTERS/Brian SnyderHousehold employment surges; participation rate risesWASHINGTON, Jan 6 - The U.S. economy added jobs at a solid clip in December, pushing the unemployment rate back to a pre-pandemic low of 3.5% as the labor market remains tight, but Federal Reserve officials could draw some solace from a moderation in wage gains.
The labor market has remained strong, despite the Fed embarking last March on its fastest interest rate-hiking since the 1980s. It is underpinning the economy by sustaining consumer spending. But the economy's resilience raises the risk the Fed could lift its target interest rate above the 5.1% peak the central bank projected last month and keep it there for a while.
Average hourly earnings rose 0.3% after increasing 0.4% in the prior month. That lowered the year-on-year increase in wages to 4.6% from 4.8% in November. Wages growth could pick up in January as several states raise their minimum wage and most workers across the country get cost of living adjustments.U.S. stocks opened higher on the moderation in wage growth. The dollar was little changed against a basket of currencies. U.S. Treasury prices were mixed.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US employers added solid 223,000 jobs in December in sign of still-robust labor marketUS employers added a solid 223,000 jobs in December in sign of a still-robust labor market despite Fed rate hikes.
Read more »
US employers added solid 223,000 jobs in December in sign of still-robust labor marketUS employers added a solid 223,000 jobs in December in sign of a still-robust labor market despite Fed rate hikes.
Read more »
U.S. job growth solid in December; unemployment rate falls to 3.5%The U.S. economy maintained a strong pace of job growth in December, with the unemployment rate falling to 3.5%, but higher borrowing costs as the Federal Reserve fights inflation could see the labor market momentum slowing significantly by mid-year.
Read more »
U.S. manufacturing sector contracts, prices decline in December-ISMU.S. manufacturing contracted further in December, but weakening demand amid higher borrowing costs pushed a measure of prices paid by factories for inputs to the lowest level in more than 2-1/2 years, signaling that goods disinflation was underway.
Read more »