199,000 jobs added in December, much below expectations

According to the Labor Department's December job report, the US economy added only 199,000 jobs. But the economy also sends mixed signals as it pushed the unemployment rate down to a new pandemic low. It was the second month where the job growth was well lower than the predictions made by economists. There was a forecast of 400,000 jobs for this month. Meanwhile, the unemployment rate fell from 4.2% in  November to 3.9% in December. 

The October and November job reports, with 546,000 and 210,000 jobs added, were revised upward by a combined 141,000 jobs. Many economists say that the report was stronger than the top-line jobs figure. But there are many forces unleashed by the pandemic like inflation, labor shortages and supply chain delays which continue to weigh on the labor market. These factors also make it hard to predict what will happen next. 

Odeta Kushi, an economist at First American Financial Corporation says, "The headline number was disappointing, but it is good to see the unemployment rate tick down to a pandemic low." Augustine Faucher, chief economist at PNC Financial Services Group said that the report was similar to the November jobs report and that it was encouraging overall. “We have a weak headline number, but the details were much better. The job market was still good at the end of 2021", he adds. 

Source: The Washington Post