Private payroll growth turned positive in December while the unemployment rate eased, signaling a labor market that remains cautious amid policy uncertainty.
By yourNEWS Media Newsroom
U.S. private-sector hiring rebounded in December but fell short of expectations, according to a national employment report released Wednesday, as the unemployment rate was projected to ease following a recent rise to a multi-year high.
Private employment increased by 41,000 jobs last month after a revised decline of 29,000 in November, the report showed. Economists surveyed ahead of the release had expected payrolls to rise by 47,000 following a previously reported drop of 32,000 in November.
The report, produced in collaboration with the Stanford Digital Economy Lab, was published ahead of the federal government’s more comprehensive December employment report due Friday. Monthly estimates from the private report have historically diverged from the government’s private payroll counts, though both have pointed to a notable slowdown in hiring as demand for labor weakens.
Despite softer job growth, layoffs remain relatively low by historical standards. Economists attribute employers’ caution largely to policy uncertainty, particularly surrounding import tariffs, which has made businesses hesitant to expand their workforces. Some firms are also incorporating artificial intelligence into certain roles, reducing the need for additional labor.
Market attention is expected to focus on the unemployment rate, which is projected to have eased to 4.5% after climbing to more than a four-year high of 4.6% in November.
The November jobless rate was partially distorted by a 43-day federal government shutdown, which disrupted the collection of household survey data. As a result, the unemployment rate for October was not published, marking the first time since the government began tracking the series in 1948 that a monthly figure was withheld.
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