Hickey Jobs Report Update December 2022
Hickey Jobs Report Update – U.S. adds 223,000 jobs in December 2022
As we closed out 2022, the U.S. economy added another 223,000 new jobs in the month of December. According to the latest U.S. Bureau of Labor Statistics Jobs Report, with the addition of more jobs in the economy, the unemployment rate saw a slight decrease to 3.5 percent, returning once again to pre-pandemic levels.
Industries leading the jobs gains for December 2022 were Leisure and Hospitality, Health Care, Construction, Social Assistance, and Manufacturing. On trend from last month, hourly wages have once again risen by 9 cents to $32.82, setting the overall wage increase at 4.6 percent over the last 12 months.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
The U.S. economy has added more than 4.5 million new workers since the beginning of 2022. Despite heightened economic uncertainty, American businesses continued adding to their workforce, with the addition of 223,000 jobs in the month of December, setting an average increase of 375,000 jobs per month across 2022.
In 2022, the Heath Care industry contributed an average addition of 49,000 jobs per month, which is 40,000 more per month than the previous year, 2021. In the month of December Health Care services increased payrolls by more than 55,000 jobs, with most notable gains in Ambulatory Health Services with the addition of 30,000 jobs.
The unemployment rate decreased by 0.2 percent to 3.5 percent which is on trend with the past few months fluctuating between 3.5 to 3.7 percent. The total Labor Participation Rate and Employment Population Ratio saw an increase in December, but both still remain 1.0 percent below February 2020 pre pandemic levels.
Largest gains in employment were seen in the Leisure + Hospitality Industry, especially within the Food Services and Drinking Places industry with 26,000 new jobs. Overall, the industry increased employment this month by 67,000 workers, yet still remains below pre-pandemic employment levels by 5.5 percent.
As expected, hourly wages once again increased in December to $32.82, a 9 cent or 0.3 percent increase. Over this year average hourly earnings have increased by 4.6 percent.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, the American economy continued a hiring surge and added another 223,000 jobs in the month of December, despite heightened economic uncertainty. Since the beginning of 2022, the U.S. economy has added more than 4.5 million jobs this year with an average hiring surge of 375,000 jobs per month.
In the month of December, the overall number of unemployed persons edged down to 5.7 million in the United States from the previous month of 6.0 million. The national unemployment rate decreased down to 3.5 percent this month, from the previous 3.7 percent seen last month and has remained in this range of 3.5-3.7 percent since March of 2022
Employment gains were seen across various industries, including Leisure and Hospitality, Health Care, Construction, Social Assistance, and Manufacturing, among others.
The federal labor agency also revised their previous projections with the calculation for year-to-date hires, setting employment estimates in October and November combined to be 28,000 jobs lower than previously reported.
The labor force participation rate increased by 0.2 percent to 62.3 percent, and the employment population ratio, which was previously 59.9 percent, saw an increase in the month of December to 60.1 percent. Both of these measurements are below pre pandemic levels by 1.0 percent.
U.S. hourly wages increased by 0.3 percent or 9 cents in December to $32.82, and over the last 12 months have increased by 4.6 percent according to the Bureau of Labor Statistics.
Key Industries
Leisure & Hospitality
The Leisure & Hospitality sector continued its upward trend by adding 67,000 new jobs in December, averaging 79,000 added jobs per month for 2022. The Food Services and Drinking Places industry saw the biggest gain in employment of 26,000 new jobs as well as the Amusements, Gambling, and Recreation sector with the addition of 25,000 jobs. The industry overall is still below its pre pandemic February 2020 levels by 5.5 percent, or 932,000 jobs.
Health Care
The Health Care sectors had large gains in employment in December with 55,000 new jobs across the U.S. These gains were led by Ambulatory Health Care Services with 30,000 new jobs, Hospitals with 16,000, and Nursing and Residential Care Facilities with 9,000. The Health Care industry had a large increase from 2021 in the average hiring surge, with the addition of 49,000 new jobs per month, compared to the average of 9,000 per month in the previous year.
Construction
The Construction industry saw an increase of hiring throughout 2022 averaging an addition of 19,000 jobs per month. In the month of December, the Construction industry added 28,000 new jobs with the most notable gain of 17,000 jobs in Specialty Trade Contractors.
Social Assistance
The Social Assistance sector continued a hiring surge with the addition of 20,000 new jobs in December. Most significant job gains were in Employment in Individual and Family Services with the addition of 10,000 jobs in December, with an average growth of 17,000 jobs per month this year.
Manufacturing
The Manufacturing industry saw an increase of 8,000 jobs in the month of December. Although the industry saw an addition of 24,000 jobs in Durable Goods, there was a decrease of 16,000 jobs in Nondurable Good. Overall, this industry averaged an addition of 32,000 jobs per month in the year 2022.
Transportation & Warehousing
The Transportation and Warehousing industry added 5,000 jobs in the month of December, following a loss of 15,000 jobs in the month of November. The industry saw little change in the addition of jobs this month due to the increase of 3,000 jobs in the Air Transportation services, but the decrease of 4,000 jobs in Couriers and Messengers and 3,000 jobs in Warehousing and Storage.
Other Notable Industries
In other notable industries, the Other Services industry continued to trend upwards with the addition of 14,000 jobs in December and added an average of 14,000 jobs per month in 2022. There was little change in employment during this month in the Retail Trade industry with 9,000 jobs, the Mining industry with 4,000 jobs, and the Government employment sector with 3,000 new jobs.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: