Economists anticipate slowing job growth from the upcoming December jobs report, marking the end of a year characterized by robust job creation and low unemployment rates. The report, set to be released by the Labor Department on Friday, will provide insights into the employment landscape as the economy continues to decelerate.
In November, the economy witnessed a modest increase of nearly 200,000 new jobs, while the unemployment rate remained steady at 3.7%. Unfortunately, job openings have experienced a downward trend for over a year, although they still stand significantly higher than pre-pandemic levels.
Experts predict that the December jobs report will reveal a decline in payroll growth, aligning with the overall economic slowdown. Eric Freedman of U.S. Bank highlights that despite the moderation, businesses will maintain their payroll expansion efforts, driven by sustained consumer demand.
One crucial aspect that has also been moderating is wage growth. Previously, wages were rising at an annualized rate of approximately 6% in 2022, which has now dropped to around 4% per year.
Nonetheless, Brendan Duke from the Center for American Progress reassures workers, stating that they are still receiving raises surpassing inflation levels and exceeding those pre-pandemic.
Duke’s analysis shows that the average American worker’s pay has increased by $900 over the past year, accounting for rising prices attributable to inflation.
As the economy evolves, economists carefully monitor the job market for any signs of stability or volatility. The upcoming December jobs report will shed light on the extent to which payroll growth has tapered off, reflecting the ongoing moderation of the overall economy.
It is vital to maintain a balanced perspective that considers the interests and needs of our audience. Thus, we will continue to provide accurate and succinct coverage of economic developments, ensuring compliance with legal and ethical standards. Our commitment is to deliver authentic and unbiased news that resonates with our global readership.
