WASHINGTON, (Reuters) – U. S. employers hired the most workers in 10 months in December while boosting wages, which could help to allay a recent…
WASHINGTON, (Reuters) – U. S. employers hired the most workers in 10 months in December while boosting wages, which could help to allay a recent upsurge in fears about the economy’s health that has roiled financial markets.
The upbeat employment report from the Labor Department on Friday stood in stark contrast with reports this week showing Chinese factory activity contracting for the first time in 19 months in December and weak manufacturing across much of Europe and Asia.
Concerns about the economy had been boosted by surveys showing sharp declines in consumer confidence and manufacturing activity last month. Both were seen as more red flags that the economic expansion, now in its ninth year and the second longest on record, is losing steam.
Nonfarm payrolls increased by 312,000 jobs last month, the largest gain since February, as employment at construction sites snapped back after being restrained by unseasonably cold temperatures in November. There were also broad gains in hiring last month.
Data for October and November were revised to show 58,000 more jobs added than previously reported. The economy created 2.6 million jobs last year compared to 2.2 million in 2017.
Average hourly earnings rose 11 cents, or 0.4 percent, in December after gaining 0.2 percent in November. That lifted the annual increase in wages to 3.2 percent, matching October’s gain, from 3.1 percent in November.
The unemployment rate increased to 3.9 percent from a near 49-year low of 3.7 percent in November as a strong labor market lured some jobless Americans from the sidelines.
