A Strong U.S. Employment Report

The December U.S. employment report was rock-solid.

• Payrolls rose 167,000, the unemployment rate held steady at 4.5%, and wage gains accelerated.
• Payroll employment rose 167,000 in December, well above expectations.
  
• October and November were revised up by a net 29,000 jobs.
  
• The unemployment rate held steady at 4.5%.
  
• Manufacturing and construction shed workers, but the service sector continued to drive the job market forward.
  
• Average hourly earnings rose a larger-than-expected 0.5%, and the yearly growth in earnings reached 4.2%. Earnings are running well ahead of inflation.
  
• There was nothing in the report to change the terms of the debate at the Fed, which is whether to hold rates steady or raise them, not whether to cut.