The U.S. economy added 148,000 new jobs in December 2017, according to the Bureau of Labor Statistics, and the unemployment rate was unchanged at 4.1 percent.
In the fourth quarter, job gains were an average of 204,000 per month, after revisions (November’s total nonfarm payroll employment was revised up to 252,000, while October’s was revised down to 211,000).
Job growth in 2017 slowed modestly compared with the strong job growth in 2015 and 2016, but remained above 2 million for the year, which is a robust performance at this point in the cycle.
The increases in nonfarm payroll employment remain above population growth, but wages have been slow to increase. In 2017, average hourly earnings rose 2.5 percent, according to the BLS. That is ahead of inflation, but not by much.
One of the strongest employment categories in December was construction, which saw an increase of 30,000 jobs, including 24,000 among specialty trade contractors. During 2017, construction jobs increased by 210,000, which is ahead of the 155,000 job gain in 2016 and reflects a robust development pipeline across construction types. Edward Zarenski, a construction economics analyst, points out construction jobs have increased 18 percent in the past four years.
Other strong employment categories were healthcare (up 31,000 in December), manufacturing (up 21,000), and food and drinking places (up 25,000). By contrast, retail trade employment showed a softening in December, falling by 20,000 jobs; overall, retail trade employment declined by 67,000 jobs in 2017.
