US economy added 256K jobs in December, well above expectations
Published On Jan 10, 2025, 8:32 AM
The U.S. economy added 256,000 jobs in December, exceeding expectations and indicating strong labor market health. The unemployment rate lowered to 4.1%. Key sectors like healthcare and retail saw significant job growth, while the manufacturing sector unexpectedly lost jobs. This positive economic news may influence the Federal Reserve's stance on interest rates, maintaining a cautious approach rather than pushing for aggressive rate cuts, especially ahead of upcoming inflation data.
Stock Forecasts
SPY
Positive
The strong job growth suggests a resilient economy that might encourage consumer spending, supporting companies and the stock market overall. The Federal Reserve may still hold off on drastic rate cuts for now, which typically stabilizes economic conditions, leading to market confidence.
Related News
Economists Are in the Wilderness. Can They Find a Way Back to Influence?
Jan 10, 2025, 5:01 AM
Economists have long helped to shape policy on issues like taxes and health care. But flawed forecasts and arcane language have cost them credibility.
The Fed Is in no Rush to Cut Rates, Even if There Is a Weak Jobs Report
Jan 10, 2025, 6:02 AM
Fed officials have signaled that it will take more than one weak report to convince them that the labor market is deteriorating.
December jobs report expected to show hiring slowdown, steady unemployment rate
Jan 9, 2025, 1:10 PM
Economists expect the latest jobs report to show the labor market continued to cool in December but not enough to prompt a Federal Reserve interest rate cut in January.