Employment in the U.S. increased by much more than expected in the month of December, according to a report released by the Labor Department on Friday.
The Labor Department said non-farm payroll employment climbed by 292,000 jobs in December compared to economist estimates for an increase of about 200,000 jobs.
The report also said employment in October and November increased by an upwardly revised 307,000 jobs and 252,000 jobs, respectively, reflecting a combined upward revision of 50,000 jobs.
The stronger than expected job growth in December was led by gains in professional and business services, construction, health care, and food services and drinking places.
On the other than, employment in the mining sector edged down by 8,000 jobs, as oil and gas companies cut jobs amid the drop in crude oil prices.
The Labor Department also said the unemployment rate held at a more than seven-year low of 5.0 percent in December, matching expectations.
The unchanged reading on unemployment came as household employment jumped by 485,000 people and the labor force increased by 466,000 people.
Chris Low, chief economist at FTN Financial, said, "A huge jobs gain in December was likely boosted by unusually clement weather. But from the Fed's perspective, it's vindication nonetheless of the decision to hike in December."
"The market is taking the report in stride as the Fed is not expected to do anything at its January meeting, and there are two more employment reports before the March decision," he added.
Meanwhile, the report also said average hourly employee earnings edged down by a penny to $25.24 in December. Compared to the same month a year ago, hourly earnings were up by 2.5 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.