WASHINGTON (AP) - U.S. employers added 155,000 jobs in December, a
steady gain that shows hiring held up during the tense negotiations to
resolve the fiscal cliff.
The solid job growth wasn't enough to push down the unemployment
rate, which remained 7.8 percent last month, the Labor Department said
Friday. The rate for November was revised up from an initially reported
7.7 percent. Each year in January, the government revises the rate for
the previous 12 months.
The government also said hiring was stronger in the previous month
than first thought. November's job gains were revised up 15,000 to
161,000. October's increase was nearly unchanged at 137,000.
The "gain is perhaps better than it looks given that firms were
probably nervous about adding workers with the fiscal cliff looming,"
said Paul Ashworth, an economist at Capital Economics.
Robust hiring in manufacturing and construction fueled the December
job gains. Construction firms added 30,000, the most in 15 months. That
increase likely reflected hiring needed to rebuild after Superstorm
Sandy and also gains in home building that have contributed to a housing
recovery.
Manufacturers added 25,000 jobs, the most in nine months.
Other higher-paying industries also added jobs. Professional and
business services, which include jobs in information technology,
management and architecture, gained 19,000. Financial services added
9,000, health care 55,000.
Lower-paying industry sectors were mixed. Restaurants and bars added
38,000 jobs. Retailers cut 11,300, a sign that the holiday shopping
season may have been weak. But those cuts came after three months of
strong gains.
All the job gains last month came from private employers. Governments shed 13,000 jobs, mostly in local school systems.
Hiring still isn't strong enough to quickly reduce still-high
unemployment. For 2012, employers added 1.84 million jobs, an average of
153,000 jobs a month, roughly matching the job totals for 2011.
But the stable hiring last month shows that employers didn't panic
during the high-stakes talks between Congress and the White House over
tax increases and spending cuts that weren't resolved until New Year's.
That's an encouraging sign for the coming months, because an even
bigger federal budget showdown is looming. The government must increase
its $16.4 trillion borrowing limit by around late February or risk
defaulting on its debt. Republicans will likely demand deep spending
cuts as the price of raising the debt limit.
Friday's report did point to some weakness in the job market. For
example, the number of unemployed actually rose 164,000 to 12.2 million.
Approximately 192,000 people entered the work force last month, but
most of them didn't find jobs.
The unemployment numbers come from a government survey of households;
the number of jobs added each month comes from a separate survey of
businesses.
A broader category that includes not only the unemployed but also
part-time workers who want full-time jobs and people who have given up
looking for work was unchanged in December at 22.7 million.
Despite still-modest job growth, the economy is improving. Layoffs
are declining. And the number of people who sought unemployment aid in
the past month is near a four-year low.
The December jobs report showed that hourly pay is staying slightly
ahead of inflation. Hourly wages rose 7 cents to $23.73, a 2.1 percent
increase compared with a year earlier. Inflation rose 1.8 percent over
the same period.
The once-depressed housing market is recovering. Companies ordered
more long-lasting manufactured goods in November, a sign that they're
investing more in equipment and software. And Americans spent more in
November. Consumer spending drives nearly 70 percent of economic growth.
Manufacturing is getting a boost from the best auto sales in five
years. Car sales jumped 13 percent in 2012 to 14.5 million. And
Americans spent more at the tail end of the holiday shopping season,
boosting overall sales that had slumped earlier in the crucial two-month
period.