WASHINGTON: US job gains exceeded expectations in December while the unemployment rate ticked down, a closely-watched government report said Friday, signaling resilience in the labor market despite efforts to cool the economy.
The jobs market has emerged as an area of concern as the Federal Reserve works to bring down decades-high inflation in the world’s biggest economy.
While the central bank has raised interest rates multiple times, making borrowing more expensive, labor demand remains strong – and officials worry that higher wages could feed into costs, keeping inflation high.
Last month, employers added 223,000 workers, down from the revised 256,000 figure in November but still higher than analysts expected, data from the Labor Department showed.
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While unemployment was expected to edge up as interest rates rose, the jobless rate defied expectations as well, dipping to 3.5 percent.
Meanwhile, average hourly earnings for workers in the private sector edged up nine cents or 0.3 percent, to $32.82, the report said.
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