WASHINGTON - U.S. employers added 223,000 jobs in December, which is evidence the economy remains healthy even as the Federal Reserve is raising interest rates to slow economic growth and hiring. As companies added jobs, the unemployment rate fell one-tenth of a percent to 3.5%, matching a 53-year low, according to the Labor Department. The December report suggests the labor market may be cooling in a way that could aid the Fed’s fight against high inflation. Last month’s gain was the smallest in two years. Average hourly pay growth eased to its slowest pace in 16 months, which may reduce pressure on employers to raise prices to offset labor costs. Average hourly wage growth was up 4.6% from December 2021. It peaked at 5.6% in March. Wall Street appears encouraged by the report’s milder pay growth and sent stock market futures toward gains. Some economists foresee a recession in the second half of 2023, a consequence of the Fed’s multiple rate hikes. Central bank officials are projecting unemployment rate to reach 4.6%. Higher pay typically fuels consumer spending, which can keep inflation up. (The AP 01/05/23) Cooler hiring and milder pay gains could aid inflation fight | AP News
No comments:
Post a Comment