New Jobs Report Disappoints, But Economy Remains Strong Overall

NEW YORK, NY — Falling short of expectations, the official December jobs report from the Bureau of Labor Statistics showed Friday that the economy added a decent but unimpressive 148,000 new hires last month. Wall St. analysts had predicted the number would be closer to 180,000, while an early report from indepedent ADP Research Institute on Thursday optimistically estimated that the economy had added 250,00 new jobs last month.

The unemployment rate held steady at a low 4.1 percent and wage growth remained modest, the BLS said Friday.

Senior Economic Analyst at Bankrate.com Mark Hamrick said that the less-than-remarkable jobs numbers "shouldn’t take away from what is largely an uplifting story. This is more than enough hiring to accommodate growth in the population and to remove slack from the labor market. An unemployment rate of 4.1 percent remains quite impressive."

He continued: "Even as much of the country shivers through the deep freeze, we can take some solace that the U.S. economy continues to be more than just lukewarm following two straight quarters of three percent plus-growth. The current economic expansion, the third-longest since the end of World War II is on track to move into the second position this year and possibly the top spot in 2019." Hamrick noted somewhat more ominously, however, that "Any number of risks could derail growth."

Cathy Barrera, chief economist at ZipRecruiter, agreed that the overall picture of the economy is encouraging.

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"Seeing the unemployment rate at a 17 year low — even after revisions — is fantastic. As we look to 2018, wage growth is what I’ll be keeping an eye on, as the tightness of the labor market sinks in with more employers," Barrera said.

"There are a few indicators — such as wage growth — that aren’t as stellar as we’d like to see them," she added. "Wages are responding to the tightness of the labor market, there may just be a lag."

Economists expect that employers will boost wages as long as the unemployment rate remains low. With fewer and fewer people looking for jobs, businesses will have to spend more on their employees to keep the best talent and attract newcomers, the reasoning goes.

Meanwhile, the Dow Jones Industrial average shot passed the 25,000 point milestone Thursday, continuing its record-breaking trend from 2017. Though the Dow is not favored by those who watch the markets most closely — they tend to prefer measures like the S&P 500 — it has become the most widely cited measure of stock market vitality.

Friday morning, President Trump, who has claimed credit for recent positive economic trends, boasted about the Dow but didn't mention the newest employment numbers.

"Dow goes from 18,589 on November 9, 2016, to 25,075 today, for a new all-time Record. Jumped 1000 points in last 5 weeks, Record fastest 1000 point move in history," he said in a tweet. "This is all about the Make America Great Again agenda! Jobs, Jobs, Jobs. Six trillion dollars in value created!"

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