December’s jobs report showed another month of stronger-than-expected growth, with gains across sectors of the U.S. economy.
Data from the Bureau of Labor Statistics shows health care and social assistance jobs had the largest growth for the third consecutive month last month, with payrolls increasing by 69,500 jobs. If private education were included, the growth in the medical group would have increased by 80,000 people, some economists say.
Retail added 43,400 jobs last month, while leisure and hospitality added 43,000 jobs, making it the second and third largest increase. According to the BLS, retail jobs can occur both inside and outside of stores, and range from infomercials to street vendors to vending machines that sell to consumers and other businesses, and can include after-sales services such as repairs and installation. It is said that it will be done.
Government jobs ranked in the top four, with an increase of 33,000 jobs in December.
“Recent job growth has been very limited to government and health care,” Julia Pollack, chief economist at ZipRecruiter, told CNBC. “Now it seems like maybe that range has expanded.”
Retail growth was supported by job gains across major categories, a reversal from a sharp decline in November. Specifically, clothing, clothing, footwear, and jewelry retailers saw an increase of 23,000 jobs, while general merchandise retailers and health care and personal care retailers added 13,000 and 7,000 jobs, respectively, according to BLS data. Job openings have increased.
The increase is “not just a flash in the pan,” Pollack said, adding that it reflects other data that points to an improving backdrop for the sector.
For example, the Texas Retail Outlook Survey conducted by the Dallas Fed in December showed that retail sales activity is accelerating. The state’s sales index, which measures retail activity, hit its highest level since late 2021.
“Retailers are becoming more optimistic about 2025 and on the back of strong consumer demand,” Pollack said. “We’ll probably see more activity in the housing market soon.”
In contrast to the strong retail industry, the manufacturing industry, which posted strong growth in November, led the decline in December, losing 13,000 jobs.
Additionally, mining, logging, and wholesale trade have gone into reverse since November last month. After posting a slight increase two months ago, mining and logging employment fell by 3,000, and wholesale trade fell further, with 3,500 jobs lost.
In addition to professional and business services, financial activity continues to show positive signs. These two groups were among nine of the 13 sectors that added jobs last month.
“Total auto sales are improving, Americans are buying expensive tickets again, (and) businesses are buying cars,” Pollack said. “These trends have accelerated in recent months and have taken time to be reflected in the labor market, but this report suggests…that the recovery is perhaps starting to take hold.”
