WASHINGTON — U.S. employers added 145,000 jobs in December and the unemployment rate held steady at 3.5%, signaling that the job market remains strong at the start of 2020 even if hiring and wage gains have slowed somewhat more than a decade into an economic expansion.
Friday’s snapshot from the Labor Department showed hiring slipped from robust gains of 256,000 in November, which were given a boost by the end of a strike at General Motors. For the year, employers added an average of roughly 175,000 jobs per month, compared with about 223,250 per month in 2018.
Annual wage growth fell in December to 2.9%, down from an annualized average of 3.3% a year earlier, a possible sign that some slack remains in the labor market and that unemployment could fall even further from its current half-century low.
The picture of a slowly-but-steadily improving economy — plus low inflation — likely gives the Federal Reserve comfort in keeping interest rates low, which has been a boon to stock markets. The Dow Jones Industrial Average fell a slight 0.34% in Friday afternoon trading, but it briefly climbed to a record-level of 29,000 in the morning.
The U.S. economy added 2.1 million jobs last year, down from gains of nearly 2.7 million in 2018. Hiring may have slowed because the number of unemployed people seeking work has fallen by 540,000 people over the past year to 5.75 million. With fewer unemployed people hunting for jobs, there is a potential limit on job gains.
Still, the report suggests a lingering weakness in manufacturing.
Factories shed 12,000 jobs in December, after the end of the GM strike produced gains of 58,000 in November. Manufacturing companies added just 46,000 jobs in all of 2019.
Manufacturing struggled last year because of trade tensions between the United States and China coupled with slower global economic growth.