WASHINGTON—The new jobs report—with 148,000 jobs gained in December—was "modestly positive" and signals positive economic growth for 2018, reported NAFCU Chief Economist and Vice President of Research Curt Long.
The unemployment rate remained at 4.1% in December as 64,000 workers joined the labor force. This matched the lowest unemployment level since December 2000, Long noted.
"The December jobs report was modestly positive, as employment gains were below expectations but still strong enough to keep the unemployment rate steady," said Long. "Wage growth remains low, but did tick up slightly to 2.5%. Overall, the job market performed well in 2017 and is a key reason why the economy is poised for its best year since the crisis in 2018."
Based on strong economic growth and strengthening in the labor market, the Federal Open Market Committee (FOMC) raised the federal funds target rate by a quarter-point to a range of 1.25 to 1.5% during its December meeting. The FOMC’s next two-day monetary policy meeting is set for Jan. 30-31.
In other report data, total private-sector payroll employment increased by 146,000 jobs during December. The goods-producing sector increased by 55,000 jobs, while the service sector increased by 91,000 jobs. Public sector employment rose by 2,000 from the prior month, Long said.
Average hourly earnings increased by nine cents to $26.63 in December. Over the last 12 months, wages are up 2.5%. Since 2009, year-over-year wage growth has averaged just 2.2%, Long noted.