Non-Farm Payrolls Rose More than Expected, but Wages Grew Less than Forecast

By:James Hyerczyk

Updated: Jan 7, 2023, 10:55 UTC•1min read

The unemployment rate fell to 3.5% versus an estimate of 3.7%. November’s reading was revised lower to 3.6%.

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The December jobs report showed that employment was only slightly stronger and wage gains were less than expected, showing some signs of progress amid the Federal Reserve’s interest rate hikes to tame inflation.

The U.S. economy added 223,000 jobs last month, slightly more than a Dow Jones consensus forecast for a 200,000 gain. However, wages grew at a slightly slower-than-expected pace, increasing 0.3% versus an estimate of 0.4%. The unemployment rate fell to 3.5% versus an estimate of 3.7%. November’s reading was revised lower to 3.6%.

Treasury yields are trading flat after the report, but down off their high. The U.S. Dollar is higher. The stock market is showing heightened volatility with the Dow up 145.00, S&P 500 Index futures up 17.50 and the NASDAQ Composite posting a 44.50 point gain.

For a look at all of today’s economic events, check out our economic calendar.