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In 2023, market growth continued – December marked the 36th consecutive month of job creation – but slowed. There were 2.7 million jobs added in 2023 vs. 4.8 million in 2022. The U.S. labor market ended the year strong, with 216,000 jobs added in December, far above the Dow Jones estimate of 170,000. Average hourly earnings rose 4.1% from 2022, higher than the 3.9% forecast. As we head into 2024, the market continues to look strong. Job openings still significantly outnumber the amount of people looking for a job.

The resilient labor market shows healthy job growth, lower unemployment and some wage growth. In November, the labor market added 199,000 jobs, higher than the Dow Jones estimate and ahead of October gains. The unemployment rate unexpectedly fell in November to 3.7% as the labor force participation rate increased to 62.8%. Average hourly earnings rose by 0.4%, up 4% from a year ago.

The labor market added 150,000 jobs in October, below the 170,000 estimate and well below the 12-month average of 258,000 jobs added. In addition, the unemployment rate ticked up to 3.9%. It is still historically low but the highest since January 2022. The market is still showing solid jobs growth, but the October report clarifies that the market is cooling.

The labor market added 336,000 jobs in September, almost DOUBLE predictions - making it the most significant job growth month since January 2023. The labor market remains resilient, with the strong pace of hiring keeping the unemployment rate from rising.