The US economy added 156,000 more jobs in December, the Labor Department said on Friday, fewer than expected by analysts.
The non-farm payroll figure increased by less than expected for December, after both October and November’s figures were revised upwards. In the previous two months 19,000 more jobs added than initially reported, meaning that the US economy created 2.16 million jobs in 2016.
The unemployment rate rose by 0.1 percentage point to 4.7 percent from a nine-year low of 4.6 percent in November. Recent employment figures show strong evidence that the US economy is picking up, with the US Federal Reserve echoing this sentiment by increasing the benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent. Fed chair Janet Yellen forecast also three rate hikes this year.
Economists polled by Reuters had forecast payrolls rising by 178,000 jobs last month, a little higher than the 156,000 reported on Friday. Analysts did, however, expect the unemployment rate to move up by one tenth of a percentage point to 4.7 percent.
Luke Bartholomew, investment manager at Aberdeen Asset Management, said: “Job growth was decent and wage growth is picking up nicely. But the only real show in town is Donald Trump’s inauguration. The economy is doing well and doesn’t obviously need the shot in the arm that Trump is planning on providing.
“The interaction between the Fed and Trump, and the resulting policy mix, is likely to be the defining theme for investors this year.”
As President Barack Obama prepares to leave office, the US economy appears to be in a strong position to welcome President-elect Donald Trump on January 20th. Trump has pledged to continue the economic growth and create 25 million jobs.