Flash Report: U.S. Jobless Rate Ticked Down in December

The U.S. unemployment rate decreased modestly in December to 4.4%, a departure from the trend that saw the reported rate rise gradually but steadily from 4.1% in June to 4.5% in November. The December decline stemmed from a 0.1 percentage point uptick in employment-to-population ratio and a 0.1 percentage point dip in labor force participation rate. Both developments worked to exert downward pressure on the jobless rate. In December, unemployment stood 0.7 percentage points above its monthly average in 2019, prior to the COVID-19 pandemic.

The November unemployment rate was revised downward, from 4.6% to 4.5%, as part of routine year-end revisions to the season adjustment factor for household data. The jobless rates for February, May and July were revised upward by 0.1 percentage points.

Total nonfarm payroll employment grew steadily in December. The economy added 50,000 jobs last month, compared with 56,000 jobs in November. However, the latest data revises November job gains downward from 64,000 to 56,000 and October job losses upward from 105,000 to 173,000.

Together, the decline in December’s unemployment rate, which remains moderate by historical standards, and steady employment growth suggest a stabilization of the labor market.