U.S. employers added 256,000 workers in November, and the unemployment rate fell to 4.1%, the Labor Department said Friday.
Economists had expected 153,000 jobs and a flat unemployment rate of 4.2%. Employment figures for the previous month were revised downward from 227,000 to 212,000.
Most of the job creation in December came from the private sector, which added 223,000 jobs. Economists had expected private sector employment to be just 130,000.
Figures are seasonally adjusted.
Retail added 43,000 jobs, reversing a loss of 29,000 in November. Leisure and hospitality also added 43,000 jobs, closer to the 2023 average of 47,000 per month than the 2024 average of 24,000.
Health care added 46,000 jobs and social assistance added 23,000 jobs. These two categories are often referred to as “government-adjacent'' because they rely heavily on public sector spending and are seen as less susceptible to changes in the business cycle.
Average hourly wages increased by 0.3% and by 3.9% from the previous year. Economists had expected wages to rise 4% year-on-year.
The much better-than-expected jobs report is likely to strengthen the view that the U.S. Federal Reserve will not cut interest rates again at its meeting at the end of this month. Perhaps more importantly, the resilience of the labor market suggests the Fed will keep policy on hold in the coming months.
