It has been reported that the U.S. unemployment rate fell to 3.5% in December. That number is lower than projections that had it steady at its previous 3.7%. Conversely, hiring decreased slightly to close the year.
Although these notes to end the year are positive in terms of employment, there remains a worrisome sentiment, as many expect a pullback in 2023. Moreover, fears of a recession loom following a year of interest rate hikes by the Federal Reserve.
U.S. Unemployment Rate Lower than Projections
The Labor Department of the United States released a report today noting that unemployment in the final month of 2022 was lower than expected. Officially, the report stated that the rate equated to 3.5%, falling below the 3.7% projection.
Additionally, it was noted within the report that hiring had slowed slightly in the month, with 223,000 jobs added in December. Correspondingly, the jobs added in November reached 256,000. The December show, however, is in accordance with surveyed economists according to USA Today, who estimated 200,000 jobs were added in the last month.
Furthermore, it was noted in the report that the average hourly earnings rose 0.30% in December. That number is a slight decrease from 0.4% and is lower than the projections that expected it to remain steady. However, year-to-year metrics show that 2022 was still a step forward economically.
2022 saw the United States add 4.5 million jobs following December’s numbers. That output places the year second only to last year’s 6.7 million, coming off the heels of the global pandemic. Furthermore, it was reported that by August, all 22 million jobs lost to the health crisis were recovered.
Nevertheless, Coindesk notes that reports have also indicated a “continued weakness in the manufacturing sector,” throughout the week. Correspondingly, the interest rate hikes could be seeing their temporary benefit in this report, with the coming two years potentially holding some rather grim developments.