The positive trend in total non-farm payroll employment in the United States continued last month, increasing by 216,000 jobs.

However, the unemployment rate in December remained steady at 3.7 per cent with 6.3 million unemployed persons. Compared to the previous year, both the unemployment rate and the number of unemployed individuals were higher.

Job growth was observed in sectors such as government, health care, social assistance and construction, but transportation and warehousing experienced job losses during the period. The U.S. Bureau of Labor Statistics reported these findings based on two monthly surveys: the household survey, which assesses labor force status, including unemployment by demographic characteristics; and the establishment survey, which measures non-farm employment, hours, and earnings by industry.

Household survey data

Among the various demographic groups, the unemployment rate for adult men (3.5 per cent), adult women (3.3 per cent), teenagers (11.9 per cent), Whites (3.5 per cent), Blacks (5.2 per cent), Asians (3.1 per cent), and Hispanics (5.0 per cent), showing minimal changes in December. The number of long-term unemployed (27 weeks or more) was stable at 1.2 million, accounting for 19.7 per cent of all unemployed.

The labour force participation rate and employment-population ratio each went down 0.3 percentage points to 62.5 per cent and 60.1 per cent, respectively. Part-time employment for economic reasons remained at 4.2 million, up by 333,000.

The number of individuals not in the labour force but desiring a job rose to 5.7 million, up by 514,000 over the year. Among them, marginally attached individuals totalled 1.6 million, with discouraged workers at 346,000, both showing little change in December and over the year.

Establishment survey data

The total non-farm payroll employment in the U.S. increased by 216,000 jobs in December 2023. Job growth was notable in government (+52,000), particularly in local and federal government, health care (+38,000) with gains in ambulatory care and hospitals, social assistance (+21,000) focusing on individual and family services, and construction (+17,000), primarily in nonresidential building construction.

However, the transportation and warehousing sectors declined by 23,000 jobs, driven by losses in couriers and messengers. Employment in leisure and hospitality remained relatively stable (+40,000), while retail trade saw minor changes (+17,000) with notable gains in some subsectors offset by losses in department stores.

Professional and business services showed modest growth (+13,000) with continued expansion in professional, scientific and technical services but declined in temporary help services. Other major industries including mining, manufacturing, wholesale trade, information, financial activities, and other services, demonstrated little change in employment during the month.

Overall, in 2023, payroll employment increased by 2.7 million, with an average monthly gain of 225,000, a slower pace compared to 2022. In December, average hourly earnings for all private nonfarm employees increased by 15 cents (0.4%) to reach US$34.27, with a 4.1 per cent rise over the past 12 months.

Average hourly earnings

For private-sector production and nonsupervisory employees, average hourly earnings grew by 10 cents (0.3%) to US$29.42. The average workweek for all private non-farm employees decreased slightly by 0.1 hour to 34.3 hours, while in manufacturing, it remained stable at 39.8 hours with no change in overtime hours.

For production and non-supervisory employees, the average workweek decreased by 0.1 hour to 33.7 hours. Additionally, there were downward revisions in the total nonfarm payroll employment figures for October and November.

The October figure was revised down by 45,000 jobs, from +150,000 to +105,000, and the November figure was revised down by 26,000 jobs, from +199,000 to +173,000. Consequently, the combined employment for October and November is now reported as 71,000 jobs lower than initially stated.

These revisions are a result of additional reports from businesses and government agencies received since the last estimates, as well as the re-calculation of seasonal factors.