ARLINGTON, Va.—With 145,000 jobs gained in the last month of 2019, the data also show a surprising drop in wage growth—but the “labor market is still on solid footing” and the labor force participation rate is "near its post-recession peak,” says NAFCU Chief Economist and Vice President of Research Curt Long.
"The December jobs report was a mediocre one, with job gains coming in on the low side of the range of expectations, downward revisions to prior month gains, and wage growth dropping below 3% for the first time since mid-2018," said Long in a new NAFCU Marco Data Flash report.
Private-sector payroll employment increased 140,000 jobs during December, with the goods-producing sector dropping 1,000 jobs, while the service sector increased 139,000 jobs.
Also of note, according to Long, October and November gains were revised downward 4,000 and 10,000 jobs, respectively.
Reinforcing Fed View
"Overall, this report will reinforce the Fed’s view that the economy is currently neither too hot nor too cold. NAFCU expects that the fed funds rate will not budge for at least the first six months of 2020," Long concluded.
Other insights from the report included mixed results among the major industries. The retail trade sector added 41,000 jobs, followed by the leisure and hospitality sector (+40,000) and education and health (+36,000). Meanwhile, both the manufacturing and mining sector saw decreases.
Average hourly earnings increased three cents to $28.32 in December, and year-over-year wage growth fell to 2.9%, Long noted.