The surprising 256,000 increase in new jobs in December and a declining unemployment rate is good news, but the latest employment reports masks recent softness in the labor market. The increase in new jobs in December, for example, was centered on just four industries: Health care, government, retail and leisure and hospitality.

President Joe Biden will end his term with a relatively healthy labor market as the U.S. added a surprising 256,000 jobs in December and the unemployment rate ticked down to 4.1%.

The Labor Department released its final jobs report for 2024 this morning. It showed another strong month of job growth, with 256,000 new payroll jobs reported.

The U.S. labor market cooled substantially in 2024, as employers sharply curtailed hiring and workers faced increasing difficulty finding jobs, although there are no signs of a recession.

Jobs data for December will add to ongoing mixed signals in the U.S. labor market. Analysts surveyed by Dow Jones expect 155,000 jobs added on the month, down from 227,000 in November, with the unemployment rate expected to have remained unchanged at 4.

US employers likely added a healthy number of jobs in December and the unemployment rate was unchanged, showcasing a labor market that for another year defied expectations for a sharper slowdown.