(AmericanProsperity.com) – Job growth is rising and has reached unexpected heights in December of 2023. Despite the higher interest rates, companies added about 164,000 jobs just in the last month.
This makes it the best month for new job creation since August 2023. Policymakers have said that the interest levels have been the highest since 2001. They did continue to say that the interest rates should be leveling out now that the economy is starting to slow down a little bit.
The rise in interest rates has affected hiring and overall job growth across the country and the Federal Reserve has been running a tightening campaign, which has affected the decision-making when it comes to interest rates and inflation.
COVID and the reaction to the pandemic slowed much of the job growth as people couldn’t work and most companies went on a hiring freeze. However, officials are stating that the increase in hiring from companies is starting to resemble how it did before the pandemic.
“We’re returning to a labor market that’s very much aligned with pre-pandemic hiring”, ADP chief economist Nela Richardson said.
She continued, “While wages didn’t drive the recent bout of inflation, now that pay growth has retreated, any risk of a wage-price spiral has all but disappeared.”
It’s been said that the leisure and hospitality industry had the biggest gains last month in terms of job growth as they added 59,000 more jobs, which was a huge gain for them after having less hiring luck throughout the pandemic.
These job gains helped to offset some of the job losses that took place during the pandemic, which led to the closure of many businesses.
Statistics from these findings show that the annual pay rose 5.4% last month, while those who switched jobs saw a rise of 8% in wages.
With this being said, sources did state that predictions from ADP are not necessarily accurate and that these findings don’t prove any future changes with unemployment or hiring.
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