US Job Market Exceeds Expectations in Final Report Before Trump’s Return
The US labor market showed impressive growth in December, as revealed in the final jobs report of the Biden administration released on January 10, 2025. The economy added 256,000 new jobs, an increase from 227,000 in November, significantly surpassing analyst predictions. The rise in employment was largely driven by sectors such as healthcare, retail, and government.
Despite concerns over rising interest rates, the unemployment rate dipped slightly from 4.2% in November to 4.1% in December. This stability follows a year where the rate was as low as 3.7%. The report indicates that job openings have remained robust, exceeding 8 million in November, facilitating a decrease in layoffs by 33% in December compared to November.
As the Federal Reserve has lowered interest rates to a range of 4.25% to 4.5%, the economic outlook appears promising, although inflation remains a concern, hovering around 2.5%. With former President Donald Trump set to re-enter the White House, economists are closely monitoring how his proposed economic policies, including tariffs and immigration reforms, could potentially influence inflation and job growth.
Federal Open Market Committee minutes from December show that board members are wary of the potential inflationary effects of these upcoming policy changes. The next Fed meeting is scheduled for January 30-31, shortly after Trump’s inauguration, with many expecting rates to remain stable.
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