WASHINGTON (AP) — U.S. job growth surged and unemployment fell last month, an unexpected show of strength that may prove costly to homebuyers and businesses who were counting on sharply lower interest rates to lower the cost of buying everything from refrigerators to homes.
Employers added 256,000 jobs last month, up from 212,000 in November, the Labor Department reported Friday.
Unemployment, which was expected to hover around 4.2%, fell to 4.1% last month. Health care companies added 46,000 jobs, retailers 43,000 and government agencies at the federal, state and local levels 33,000.
The final jobs report of 2024 underscores that the economy and hiring were able to grow at a solid pace even with interest rates much higher than they were before the pandemic. As a result, the Federal Reserve could be much less likely to cut borrowing costs again in the coming months. The Fed cut its rate three times last year in part out of concern that hiring and growth were flagging.
Overall, the solid jobs figures suggest the economy is entering a post-COVID period of steady growth, higher interest rates, low unemployment, and slightly elevated inflation.
“There’s just no need for additional cuts in the Fed’s rate any time soon,” said Joe Brusuelas, chief economist at RSM, an accounting and tax advisory firm.
Brusuelas says that the economy, fueled in part by greater productivity, can grow at a steadily faster rate than it has…
