- U.S Companies Create Most Jobs in 10 Months; Add 312,000 in December
U.S. companies created the most jobs in 10 months as both labor participation and wage growth increased in December.
Employers created 312,000 jobs during the month, according to the Labor Department report released on Friday. The November number was revised upward to 176,000, higher than the 155,000 previously reported.
Wage growth climbed from 3.1 percent year-on-year in November to 3.2 percent in December, validating the Fed’s position that tight labor market will force businesses to increase wages to attract skilled employees.
However, the unemployment rate rose from 3.7 percent to 3.9 percent due to the surge in labor participation rate.
The report put the total payrolls gain in 2018 to 2.64 million, up from 2.19 million recorded in 2017. This should now ease the pressure on Federal Reserve after President repeatedly blamed Federal Reserve policy for the recent stock rout.
Now, “this should give the Fed some comfort that their assessment of the economy is correct and that they’re on track for further rate increases this year,” said Michael Gapen, chief U.S. economist at Barclays Plc.
The Federal Reserve is expected to raise interest rates twice in 2019.