Payroll employment increases by 216,000 in December; unemployment rate unchanged at 3.7%
Household Survey Data
The unemployment rate held at 3.7 percent in December, and the number of unemployed
persons was essentially unchanged at 6.3 million. These measures are higher than a
year earlier, when the jobless rate was 3.5 percent and the number of unemployed
persons was 5.7 million. (See table A-1.)
Among the major worker groups, the unemployment rates for adult men (3.5 percent),
adult women (3.3 percent), teenagers (11.9 percent), Whites (3.5 percent), Blacks
(5.2 percent), Asians (3.1 percent), and Hispanics (5.0 percent) showed little change
in December. (See tables A-1, A-2, and A-3.)
The number of long-term unemployed (those jobless for 27 weeks or more), at 1.2 million,
was little changed in December and over the year. The long-term unemployed accounted
for 19.7 percent of all unemployed persons in December. (See table A-12.)
The labor force participation rate, at 62.5 percent, and the employment-population ratio,
at 60.1 percent, both decreased by 0.3 percentage point in December. These measures
showed little or no change over the year. (See table A-1.)
The number of persons employed part time for economic reasons, at 4.2 million, changed
little in December but was up by 333,000 over the year. These individuals, who would
have preferred full-time employment, were working part time because their hours had
been reduced or they were unable to find full-time jobs. (See table A-8.)
The number of persons not in the labor force who currently want a job edged up to 5.7
million in December and was up by 514,000 over the year. These individuals were not
counted as unemployed because they were not actively looking for work during the 4
weeks preceding the survey or were unavailable to take a job. (See table A-1.)
Among those not in the labor force who wanted a job, the number of persons marginally
attached to the labor force changed little at 1.6 million in December but was up by
306,000 over the year. These individuals wanted and were available for work and had
looked for a job sometime in the prior 12 months but had not looked for work in the
4 weeks preceding the survey. The number of discouraged workers, a subset of the
marginally attached who believed that no jobs were available for them, at 346,000,
was little changed in December and over the year. (See Summary table A.)
Establishment Survey Data
Total nonfarm payroll employment increased by 216,000 in December. Employment
continued to trend up in government, health care, social assistance, and construction,
while transportation and warehousing lost jobs. Payroll employment rose by 2.7 million
in 2023 (an average monthly gain of 225,000), less than the increase of 4.8 million in
2022 (an average monthly gain of 399,000). (See table B-1.)
Government employment increased by 52,000 in December. Employment continued to trend
up in local government (+37,000) and federal government (+7,000). Government added an
average of 56,000 jobs per month in 2023, more than double the average monthly gain of
23,000 in 2022.
In December, health care added 38,000 jobs. Employment continued to trend up in
ambulatory health care services (+19,000) and hospitals (+15,000). Job growth in health
care averaged 55,000 per month in 2023, compared with the 2022 average monthly gain
of 46,000.
Employment in social assistance rose by 21,000 in December, mostly in individual and
family services (+17,000). Social assistance employment rose by an average of 22,000
per month in 2023, little different than the average increase of 19,000 per month
in 2022.
In December, construction employment continued to trend up (+17,000). Employment in
nonresidential building construction increased by 8,000. Construction added an average
of 16,000 jobs per month in 2023, little different than the 2022 average monthly gain
of 22,000.
Employment in transportation and warehousing declined by 23,000 in December. Couriers
and messengers lost 32,000 jobs, while air transportation added 4,000 jobs. Since
reaching a peak in October 2022, employment in transportation and warehousing has
decreased by 100,000.
Employment in leisure and hospitality changed little in December (+40,000). The
industry added an average of 39,000 jobs per month in 2023, less than half the
average gain of 88,000 jobs per month in 2022. Employment in the industry is
below its pre-pandemic February 2020 level by 163,000, or 1.0 percent.
Retail trade employment changed little in December (+17,000). Over the month,
employment increased in warehouse clubs, supercenters, and other general merchandise
retailers (+14,000); building material and garden equipment and supplies dealers
(+8,000); and automotive parts, accessories, and tire retailers (+4,000). These job
gains were partially offset by a job loss in department stores (-13,000). Retail
trade employment has shown little change, on net, since recovering in early 2022
from pandemic-related losses.
In December, employment in professional and business services changed little (+13,000).
Employment in professional, scientific, and technical services continued to trend up
(+25,000); this industry added an average of 22,000 jobs per month in 2023, about half
the average monthly gain of 41,000 in 2022. In December, employment in temporary help
services continued its downward trend (-33,000) and has fallen by 346,000 since reaching
a peak in March 2022. Overall, employment in professional and business services changed
little in 2023.
Employment showed little change over the month in other major industries, including
mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade;
information; financial activities; and other services.
In December, average hourly earnings for all employees on private nonfarm payrolls
rose by 15 cents, or 0.4 percent, to $34.27. Over the past 12 months, average hourly
earnings have increased by 4.1 percent. In December, average hourly earnings of
private-sector production and nonsupervisory employees rose by 10 cents, or 0.3 percent,
to $29.42. (See tables B-3 and B-8.)
The average workweek for all employees on private nonfarm payrolls edged down by 0.1
hour to 34.3 hours in December. In manufacturing, the average workweek was little changed
at 39.8 hours, and overtime remained at 2.9 hours. The average workweek for production
and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7
hours. (See tables B-2 and B-7.)
The change in total nonfarm payroll employment for October was revised down by 45,000,
from +150,000 to +105,000, and the change for November was revised down by 26,000, from
+199,000 to +173,000. With these revisions, employment in October and November combined
is 71,000 lower than previously reported. (Monthly revisions result from additional
reports received from businesses and government agencies since the last published
estimates and from the recalculation of seasonal factors.)