US Economy Surges with 216,000 New Jobs, Unemployment Lowest Since 1960s

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• The US economy added 216,000 new jobs in December, surpassing economists' expectations.
• The unemployment rate remained at 3.7%, marking the 25th consecutive month below 4%.
• In 2023, the US added 2.7 million jobs, countering forecasts of a recession.

The US economy displayed remarkable strength in December 2023, as it added 216,000 new jobs, exceeding the predicted figure of 170,000.

This development capped off a year of significant employment growth, with the unemployment rate holding steady at 3.7%. This consistency in low unemployment levels, persisting for 25 months, marks the longest period since the 1960s that the rate has remained below 4%.

Despite earlier downward revisions in the job gains for October and November, the overall employment figures for 2023 were robust, with more than 2.7 million jobs added. This performance defied the expectations set earlier in the year, where higher interest rates were anticipated to lead to a recession.

Federal Reserve Chair Jerome Powell had previously signaled tough times ahead due to the increase in interest rates aimed at curbing high inflation. Economists had predicted that the resultant higher borrowing costs would lead to a recession with increased layoffs and rising unemployment. However, the anticipated recession did not materialize, and the labor market maintained its strength, keeping unemployment rates near historic lows.

The resilience of the job market was mirrored in the broader economy. The US GDP grew at a strong annual rate of 4.9% from July to September, fueled by robust consumer spending and business investment. This news is a part of an ongoing story, with more details expected to be released.

SOURCE