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Total nonfarm payroll employment increased by 216,000 in December, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs.
This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry. For more information about the concepts and statistical methodology used in these two surveys, see the Technical Note.
Household Survey Data
The unemployment rate held at 3.7 percent in December, and the number of unemployed persons was essentially unchanged at 6.3 million. These measures are higher than a year earlier, when the jobless rate was 3.5 percent and the number of unemployed persons was 5.7 million. (See table A-1.)
Among the major worker groups, the unemployment rates for adult men (3.5 percent), adult women (3.3 percent), teenagers (11.9 percent), Whites (3.5 percent), Blacks (5.2 percent), Asians (3.1 percent), and Hispanics (5.0 percent) showed little change in December. (See tables A-1, A-2, and A-3.)
The number of long-term unemployed (those jobless for 27 weeks or more), at 1.2 million, was little changed in December and over the year. The long-term unemployed accounted for 19.7 percent of all unemployed persons in December. (See table A-12.)
The labor force participation rate, at 62.5 percent, and the employment-population ratio, at 60.1 percent, both decreased by 0.3 percentage point in December. These measures showed little or no change over the year. (See table A-1.)
The number of persons employed part time for economic reasons, at 4.2 million, changed little in December but was up by 333,000 over the year. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.)
The number of persons not in the labor force who currently want a job edged up to 5.7 million in December and was up by 514,000 over the year. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job. (See table A-1.)
Among those not in the labor force who wanted a job, the number of persons marginally attached to the labor force changed little at 1.6 million in December but was up by 306,000 over the year. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, at 346,000, was little changed in December and over the year. (See Summary table A.)
Establishment Survey Data
Total nonfarm payroll employment increased by 216,000 in December. Employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs. Payroll employment rose by 2.7 million in 2023 (an average monthly gain of 225,000), less than the increase of 4.8 million in 2022 (an average monthly gain of 399,000). (See table B-1.)
Government employment increased by 52,000 in December. Employment continued to trend up in local government (+37,000) and federal government (+7,000). Government added an average of 56,000 jobs per month in 2023, more than double the average monthly gain of 23,000 in 2022.
In December, health care added 38,000 jobs. Employment continued to trend up in ambulatory health care services (+19,000) and hospitals (+15,000). Job growth in health care averaged 55,000 per month in 2023, compared with the 2022 average monthly gain of 46,000.
Employment in social assistance rose by 21,000 in December, mostly in individual and family services (+17,000). Social assistance employment rose by an average of 22,000 per month in 2023, little different than the average increase of 19,000 per month in 2022.
In December, construction employment continued to trend up (+17,000). Employment in nonresidential building construction increased by 8,000. Construction added an average of 16,000 jobs per month in 2023, little different than the 2022 average monthly gain of 22,000.
Employment in transportation and warehousing declined by 23,000 in December. Couriers and messengers lost 32,000 jobs, while air transportation added 4,000 jobs. Since reaching a peak in October 2022, employment in transportation and warehousing has decreased by 100,000.
Employment in leisure and hospitality changed little in December (+40,000). The industry added an average of 39,000 jobs per month in 2023, less than half the average gain of 88,000 jobs per month in 2022. Employment in the industry is below its pre-pandemic February 2020 level by 163,000, or 1.0 percent.
Retail trade employment changed little in December (+17,000). Over the month, employment increased in warehouse clubs, supercenters, and other general merchandise retailers (+14,000); building material and garden equipment and supplies dealers (+8,000); and automotive parts, accessories, and tire retailers (+4,000). These job gains were partially offset by a job loss in department stores (-13,000). Retail trade employment has shown little change, on net, since recovering in early 2022 from pandemic-related losses.
In December, employment in professional and business services changed little (+13,000). Employment in professional, scientific, and technical services continued to trend up (+25,000); this industry added an average of 22,000 jobs per month in 2023, about half the average monthly gain of 41,000 in 2022. In December, employment in temporary help services continued its downward trend (-33,000) and has fallen by 346,000 since reaching a peak in March 2022. Overall, employment in professional and business services changed little in 2023.
Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; information; financial activities; and other services.
In December, average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents, or 0.4 percent, to $34.27. Over the past 12 months, average hourly earnings have increased by 4.1 percent. In December, average hourly earnings of private-sector production and nonsupervisory employees rose by 10 cents, or 0.3 percent, to $29.42. (See tables B-3 and B-8.)
The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.3 hours in December. In manufacturing, the average workweek was little changed at 39.8 hours, and overtime remained at 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7 hours. (See tables B-2 and B-7.)
The change in total nonfarm payroll employment for October was revised down by 45,000, from +150,000 to +105,000, and the change for November was revised down by 26,000, from +199,000 to +173,000. With these revisions, employment in October and November combined is 71,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
Revision of Seasonally Adjusted Household Survey Data
At the end of each calendar year, BLS updates the seasonal adjustment factors for the national labor force series derived from the household survey. As a result of this process, seasonally adjusted data for January 2019 through November 2023 were subject to revision. (Not seasonally adjusted data were not subject to revision.)
More information on this year’s revisions to seasonally adjusted household series is available at www.bls.gov/web/empsit/cps-seas-adjustment-methodology.pdf. Detailed information on the seasonal adjustment methodology is found at www.bls.gov/cps/seasonal-adjustment-methodology.htm.
Historical data for the household series contained in the A tables (A-1 through A-16) of this news release, including the revised seasonally adjusted data, can be accessed at www.bls.gov/cps/cpsatabs.htm. Additional revised historical seasonally adjusted data are available at www.bls.gov/cps/data.htm and https://download.bls.gov/pub/time.series/ln/.
Month As First Published As Revised Change
Source: U.S. Bureau of Labor Statistics · Original release Jan 5, 2024.
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