The US economy closed out 2024 with another solid month of job gains
By Alicia Wallace, CNN
(CNN) — The US economy added 256,000 jobs last month and the unemployment rate dipped to 4.1% from 4.2%, wrapping up a year that marked a return to pre-pandemic norms, according to Bureau of Labor Statistics data released Friday.
While the final jobs report for 2024 underscores how the US labor market has turned the corner since the pandemic, there’s plenty of uncertainty as to what 2025 could bring for the trajectory of the labor market — in part because of President-elect Donald Trump’s potential policy changes involving trade, immigration, taxes and the federal workforce.
Including December’s gains, which are subject to revision, the economy added about 2.2 million jobs in 2024, in line with annual totals from 2017 to 2019.
Economists were expecting a net gain of 153,000 jobs and for the unemployment rate to stay at 4.2%, according to FactSet.
US stock futures dropped sharply after the better-than-expected report, with futures on the Dow falling by almost 400 points before settling slightly higher. The 10-year Treasury yield surged to 4.8% as traders fear the robust data and a stronger economy could lead the Federal Reserve to pause its rate-cutting campaign.
The labor market has shown resilience and stability after recovering from a once-in-a-generation pandemic and navigating the dual pressures of fast-rising prices and high interest rates. The unemployment rate has remained low, employment participation has increased (especially among women and prime-aged workers), productivity has increased and wage gains have outpaced inflation for 19 months.
The solid labor market has helped fuel consumer spending, which in turn has kept the overall economy strong as inflation has eased — perhaps setting the stage for the rare achievement of a “soft landing” of price stabilization without a recession.
Still, the jobs market isn’t impenetrable. Job growth is slowing, hiring has dropped off, and people are staying unemployed for longer, fueling concerns that a greater weakening could be afoot.
The Fed, with an eye on ensuring maximum employment in addition to cooler inflation, has cut interest rates by a full point in recent months. The pace of cuts, however, is expected to moderate in 2025, the Fed has indicated, noting potential risks to inflation as well as underlying strength in the labor market.
This story is developing and will be updated.
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