U.S. Job Growth Remains Strong Despite Cooling Economy

The US economy added 199,000 jobs in November, with the unemployment rate dropping to 3.7%. Despite a year and a half of interest rate increases, the economy remains far from recession territory. Wages rose more than expected, and consumer confidence jumped sharply in December. While employment growth has narrowed, service industries and the public sector continue to show strength, while businesses dependent on selling physical goods have struggled. Temporary help services have seen a decline in jobs, indicating that employers can handle customer requests with their regular staff. Most forecasters expect a continued weakening in job growth in early 2024 as consumers run through their savings, but the likelihood of a recession within the next year is considered low.