U.S. Hiring Slows but Remains Solid

The U.S. economy produced jobs at a slower but still comfortable rate at the end of 2022, as higher interest rates and changing consumer habits downshifted the labor market without bringing it to a stop.

Employers added 223,000 jobs in December, the Labor Department reported on Friday, about in line with economists’ expectations but lower than the average in recent months. The unemployment rate ticked down to 3.5 percent, back to its low point from before the pandemic.

“If the U.S. economy is slipping into recession, nobody told the labor market,” said Chris Varvares, co-head of U.S. economics for S&P Global Market Intelligence. “The report this morning highlighted the step-down in growth relative to 2021, but it’s to a level that’s still almost double what would be trend growth in employment.”

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