The U.S. labor market saw a strong finish to 2024, with employers expanding payrolls by 256,000 jobs, according to the December jobs report from the Bureau of Labor Statistics (BLS). That figure is well above economists’ forecasts of between 150,000 and 153,000 jobs.
December’s gains mark 12 consecutive months of job growth for the U.S. economy, which added about 2.2 million jobs in 2024. However, the BLS also notes in the December jobs report that employers added 8,000 fewer positions in October and November than previously reported.
Private education and health services, an industry that has seen consistent and often significant payroll expansion throughout 2024, closed out the year by adding 80,000 jobs.
After reporting significant layoffs in November, the retail trade industry added 43,400 jobs in December. Employers in leisure and hospitality weren’t far behind that figure, adding 43,000 jobs to the U.S. economy last month.
These industries also saw significant job gains in December, according to the BLS:
Government: 33,000 jobs added
Professional and business services: 28,000 jobs added, including 5,300 jobs in temporary help services
Financial activities: 13,000 jobs added
Information: 10,000 jobs added
Transportation and warehousing: 9,600 jobs added
Construction: 8,000 jobs added
Industries that saw payroll contraction last month include manufacturing (-13,000 jobs) and wholesale trade (-3,500 jobs).
The BLS reports the U.S. unemployment rate in December was 4.1%, down from 4.2% in November. After increasing earlier in 2024, the national unemployment rate has been either 4.1% or 4.2% for the past seven months.
The rate for college-degreed professionals who are 25 or older was 2.4%, little changed from the previous month, indicating that the demand for specialized talent continues to hold steady. Other recent BLS data shows many highly skilled jobs in accounting and finance, technology, legal, marketing and creative, and administrative services have even lower unemployment rates.
In a separate report released earlier this week, the BLS noted that job openings in November were at 8.1 million, up from 7.7 million at the end of October. With about 1.1 job openings per unemployed person, the labor market remains tight, underscoring the competitive demand for skilled talent.
New research from Robert Half shows 63% of U.S. employers plan to add new positions in the first half of 2025, up from 52% just six months ago. Company growth, employee turnover and new projects are factors driving hiring plans for many employers.
While many businesses are actively seeking to staff positions amid growing confidence in economic conditions, BLS data shows a downward trend in the voluntary quit rate. This indicates many workers remain cautious about changing jobs. Career satisfaction is also contributing to reduced churn, as many professionals report feeling content in their current roles, according to our workplace research.
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