In December 2024, the U.S. job market displayed robust and unexpected growth, defying predictions with significant gains across various sectors. The nonfarm payrolls surged, showcasing stellar performance in health care, social assistance, retail trade, and leisure and hospitality. Health care and social assistance once again took the lead, adding an impressive 69,500 jobs to payrolls for a third consecutive month. Retail trade rebounded sharply, contributing 43,400 new positions after experiencing notable declines in November.
Manufacturing faced challenges, shedding 13,000 jobs in December. The mining and logging sector also reported a decline, with employment dropping by 3,000. Wholesale trade was not immune to the downturn, losing 3,500 positions. Despite these declines in specific sectors, the overall job market demonstrated resilience.
The government sector provided a bright spot with an increase of 33,000 jobs. This growth aligns with recent trends where job expansion has been concentrated in government and health care. Julia Pollak noted that "recently, job growth has been very narrowly concentrated in government and health care."
Retail jobs experienced a resurgence in December, buoyed by consumer confidence and increased spending. The sales index for state retail activity reached its highest point since late 2021. Within the retail sector, clothing and accessory stores saw a boost of 23,000 positions. General merchandise retailers added 13,000 jobs, while health and personal care retailers expanded by 7,000 jobs. Julia Pollak commented on the retail sector's future outlook, stating that "retailers are more upbeat on 2025 and on the backs of a strong consumer."
Leisure and hospitality matched retail trade's success by adding 43,000 jobs. Meanwhile, the health care group's growth could have surged to 80,000 if private education were included. This marked yet another month of stronger-than-expected job growth across various economic segments.
The job report underscored the dynamic nature of the U.S. economy as it continues to recover and adapt to changing circumstances. Julia Pollak highlighted broader economic indicators by saying, "We're seeing improvement in total vehicle sales, Americans are making big-ticket purchases again, [and] businesses are buying vehicles too."