The US labor market remained strong in December, with nonfarm payrolls increasing by 223,000, surpassing the Dow Jones estimate of 200,000, and the unemployment rate falling to 3.5%. The job growth was a slight decrease from the 256,000 gain in November, but the unemployment rate reached a new low. 
Leisure and hospitality led job growth with 67,000 added positions, followed by health care with 55,000, construction with 28,000, and social assistance with 20,000. While wage growth was less than expected, indicating potential weakening inflation pressures, the strong demand for labor has pushed wages higher, though they have mostly not kept up with inflation.
The Federal Reserve has raised its benchmark interest rate seven times in 2022 in an effort to slow economic growth and address the imbalance between demand and supply in the labor market, with more rate hikes expected. Despite these efforts, the strong demand for labor has persisted, with about 1.7 job openings for every available worker in November.
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