The United States added 216,000 jobs in December and unemployment stood at 3.7 percent.

US job growth rose unexpectedly in DecemberGovernment data showed on Friday, capping a strong year for the labor market, even as voters remained pessimistic about the economy ahead of November’s presidential election.

The world’s largest economy added 216,000 jobs in the last month of 2023 Despite expectations of a slowdown compared to November, when The unemployment rate remained unchanged at 3.7 percentThe Department of Labor said.

about it 23 consecutive months below 4%That is, over two years, a stretch that was last achieved in the 1960s.

The latest data reflects the economy and labor market returning to normal. Normality before epidemics. Hiring remains steady and, although employers are posting fewer vacancies, they are not laying off many workers.

Despite low unemployment and cool inflation, Polls show many Americans are dissatisfied with the economy. That disconnection, which might be a 2024 election problemhas shocked economists and political analysts.

One key factor, however, is Public anger over rising prices. Inflation has been falling continuously for one and a half years. Prices are still 17% higher than before inflation began.

Fed President, Jerome Powell, warned of tough times ahead after the central bank begins raising interest rates in spring 2022 to attack high inflation. Most economists predicted a recession in 2023, with layoffs and rising unemployment.

However, a recession has never occurred, and one does not appear to be on the horizon. The nation’s labor market, while cooler than the hot years of 2022 and 2023, continues to generate enough jobs to keep the unemployment rate near historic lows.

is matched by the elasticity of the labor market Sustainability of the economy in general

.

Far from entering a recession, andUS Gross Domestic Product -Total output of goods and services- a An impressive annual rate of 4.9% between July and September. Strong consumer spending and business investment fueled much of the expansion.

at the same time, Average hourly wages have outpaced inflation in the past yearLeaving more money for Americans to spend.

In fact, like most of 2023, the customersThe great engine of American economic growth, They went to stores, shopped online, went to restaurants or traveled in November.

From March 2022, The Federal Reserve has raised its benchmark interest rate 11 times, putting it at its highest level in 22 years, at about 5.4%. Those higher rates have made loans more expensive for businesses and households, but they are on track to achieve their goal: beating inflation.

A cooling labor market is not enough to indicate that a recession is imminent. In general, slower job growth would be a cause for concern. But under current circumstances, with inflation still above the 2% annual target set by the Federal Reserve, a more moderate pace of hiring is considered just what the economy needs.

Less demand for labor reduces pressure on employers to increase salary to retain or attract workers and to pass on their higher labor costs to consumers by raising prices.

Consumer prices rose 3.1% in November Compared to the previous year, that represents a sharp decline from 9.1% in June 2022, the highest in four decades. The Fed is so pleased with progress so far that it has not raised rates since July and has signaled it expects three rate cuts this year.

In addition to the severe blow to the housing market, The rate hike has not hurt the overall economy much. Many industrial sectors, such as healthcare and public administration, have proven relatively resistant to rising interest rates.

(With information from AP and AFP)