US jobs growth remained strong last month even as the economy grappled with the effects of rapidly rising prices.
Employers added 223,000 positions in December, causing the unemployment rate to decline from 3.6% in November to 3.5%.
The resilience of the labor market has raised hopes that the world's largest economy will avoid a severe economic downturn this year.
The US central bank has been raising borrowing costs to cool the economy and ease price pressures.
But hiring has stalled despite pressure from higher interest rates.
Bars and restaurants, health care firms and construction businesses helped boost profits last month.
Average hourly earnings increased by 4.6% over the previous year. This was a slower pace than in November, in what analysts said was a positive sign for the fight against inflation.
However, it was mixed news for the employees, who have not seen the increase in their salaries keeping pace with the prices.
Mark Hamrick said, "Workforce wages are failing to keep up with the rise in prices at the consumer level. This is a source of strain on the household budget. How this equation unfolds in the coming months will be important, including including whether inflationary pressures subside." , senior economic analyst at Bankrate.com.
Source link bbc news
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