This positive development on its front sealed them a surprisingly strong year, supporting the case of stopping interest rate reductions of the Federal Reserve (Fed), reports Bloomberg. Non-agricultural wages increased by 256,000, surpassing all forecasts except one in a Bloomberg survey among economists. The unemployment rate in the US declined to 4.1%, while average hourly earnings increased by 0.3% since November, according to the current (10.1.2025) report of the Office for Labour Statistics. CORVERSE The evidence confirms that the labour market lasted last year despite high borrowing costs, sustained inflation and political uncertainty. While demand for workers decreased and the unemployment rate increased in 2024, the economy added 2.2 million jobs – below the 3 million increase in 2023, but over the 2 million created in 2019. In addition, the report included annual revisions of the unemployment rate. In particular, the maximum rate in July – originally reported as 4.3% and helped set the bases for an entire percentage rate reduction by the Fed later in the year – was revised lower, suggesting that the labour market was somewhat more durable during the summer than previously considered.
US: Unexpected Unemployment Reduction in December 2024
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