U.S. Economy Adds 74K Jobs in December, Well Below Views
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The U.S. economy added only 74,000 jobs in December, well shy of estimates and dinging hopes of a widespread jobs recovery.
The headline unemployment rate fell to 6.7%, the lowest level in five years. But the rate fell primarily because hundreds of thousands of people left the workforce unable to find jobs, according to figures released Friday by the U.S. Department of Labor.
With 347,000 dropping out of the workforce, the labor force participation rate, which measures people actively looking for work, fell to 62.8%, a four-decade low.
Economists had predicted 196,000 new jobs last month and that the unemployment rate would remain unchanged at 7%.
The November data was revised upwards from a gain of 203,000 jobs to 241,000, meaning employment gains in October and November were 38,000 higher than previously reported.
Analysts were hard pressed to explain why the December numbers fell so short of expectations.
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