The December jobs report marked another month of stronger-than-expected growth, with gains coming from many different parts of the U.S. economy.
According to the Bureau of Labor Statistics, health care and social assistance jobs posted the largest gains for the third straight month last month, increasing the number of employees by 69,500. Including private education, as some economists do, the health care group's growth would have increased by 80,000.
Retail, which added 43,400 jobs, and leisure and hospitality, which added 43,000, had the second and third largest gains last month. According to the BLS, retail jobs take place inside or outside of a store, from infomercials to street vendors to vending machines. They may sell to consumers or other businesses and include after-sales services such as repair and installation.
Government offices rounded out the top four, posting an increase of 33,000 in December.
“Recently, job growth has been very narrowly focused in government and health care,” Julia Pollak, chief economist at ZipRecruiter, told CNBC. “Now it looks like it might be expanding.”
Retail growth, a significant turnaround from sharp losses in November, was supported by job gains in key categories. Specifically, apparel, clothing accessories, footwear and jewelry retailers saw a 23,000 job gain, while general merchandise retailers and health and personal care retailers gained 13,000 and 7,000 jobs, respectively, according to BLS data.
This increase is “not just a blip,” Pollak said, adding that it reflects other data that suggests the sector is improving.
For example, the Federal Reserve Bank of Dallas' December Texas Retail Outlook Survey showed an acceleration in retail sales. The sales index, which measures state retail activity, hit its highest level since late 2021.
“Retailers are more optimistic about 2025 and rely on a strong consumer,” Pollak said. “We will probably see more movement in the real estate market soon.”
In contrast to the strength of retail, manufacturing, which posted significant growth in November, declined in December, losing 13,000 jobs.
Additionally, mining and logging as well as wholesale trade reversed course last month compared to November. After slight gains two months ago, jobs in mining and logging fell by 3,000, while wholesale trade fell even more sharply, losing 3,500 jobs.
Professional and business services and financial activities continued to be bright spots. These two groups were among nine of 13 sectors that added jobs last month.
“We are seeing an improvement in overall vehicle sales, Americans are making large purchases again, [and] Companies also buy vehicles,” said Pollak. “These trends have increased in recent months; It took a while for them to gain traction in the labor market, but this report suggests that … perhaps a recovery is starting to take hold.”
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