The labor market remained steady in December, with the unemployment rate holding at 4.1 percent and minimal changes in the number of unemployed individuals, which stood at 6.9 million, according to the Bureau of Labor Statistics. After rising earlier in the year, the unemployment rate has remained in the narrow range of 4.1 percent to 4.2 percent over the past seven months. Meanwhile, total nonfarm payroll employment increased by 256,000 in December, with job growth concentrated in healthcare, government, and social assistance. Other major industries, including mining, construction, manufacturing, transportation, and professional services, saw little change in employment during the month.
Principal Asset Management highlighted the implications of this resilience for monetary policy, stating, “With the unemployment rate also ticking lower to 4.1 percent, U.S. labor market strength is clearly a continuing theme and suggests that the economy continues to thrive — the Fed can