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The added jobs that have come into the new year were much lower than anticipated. The economy added only 74,000 jobs last month while, to the surprise of many, the unemployment rate dropped to 6.7 percent.
According to The New York Times, the Labor Department’s data suggested a big hike in the amount of available jobs in December. However, the pace of job creation was much slower in the months prior.
In the three months prior to December, 200,000 jobs per month were added to the market. While analysts believed that it would continue, only 74,000 were added in December. The monthly job creation was the worst that it has been in two years.
The Labor Force participation rate is its lowest since January of 1978 at 62.8 percent, which most likely led to the seemingly good drop in unemployment.
CNBC reports that economists Mark Zandi and Austan Goolsbee say to not take these numbers very seriously. Though employment dropped for a month the number will most likely be revised much higher in the future.
Kathy Bostjancic, director of macroeconomic analysis at The Conference Board said, "A gain of only 74,000 new jobs in December stands in contrast to the strengthening posted in other major economic data, suggesting the dip in hiring might prove temporary.”
image: Wikimedia Commons