Unemployment Rate Falls to 4.1 Percent
January 10, 2025 – Employment rose by 256,000 in December as the U.S. unemployment rate dipped slightly to 4.1 percent, according to the most recent U.S. Bureau of Labor Statistics report. The number of unemployed persons was 6.9 million in December. Employment trended up in healthcare, government, and social assistance. Retail trade added jobs in December, following a job loss in November.
Among the major worker groups, the unemployment rate for Whites (3.6 percent) edged down in December. The jobless rates for adult men (3.7 percent), adult women (3.8 percent), teenagers (12.4 percent), Blacks (6.1 percent), Asians (3.5 percent), and Hispanics (5.1 percent) changed little over the month. Among the unemployed, the number of permanent job losers declined by 164,000 to 1.7 million in December but is little different from a year earlier. The number of people on temporary layoff, at 862,000, changed little over the month and over the year.
In December, the number of long-term unemployed (those jobless for 27 weeks or more) changed little at 1.6 million but is up by 278,000 from a year earlier. The long-term unemployed accounted for 22.4 percent of all unemployed people in December. The labor force participation rate, at 62.5 percent, was unchanged over the month and has remained in a narrow range of 62.5 percent to 62.7 percent since December 2023. The employment-population ratio, at 60.0 percent, changed little over the month and over the year.
The number of people employed part time for economic reasons, at 4.4 million, changed little in December and is little different from a year earlier. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs.
The number of people not in the labor force who currently want a job, at 5.5 million, was essentially unchanged in December. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job. Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force, at 1.6 million, was virtually unchanged in December. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, changed little at 480,000 in December.
Where Job Growth Occurred
• Healthcare added 46,000 jobs in December, with gains in home healthcare services (+15,000), nursing and residential care facilities (+14,000), and hospitals (+12,000). Healthcare added an average of 57,000 jobs per month in 2024, the same as the average monthly gain in 2023.
Related: Predicting Talent Acquisition Trends for 2025
• Retail trade added 43,000 jobs in December, following a loss of 29,000 jobs in November. In December, employment increased in clothing, clothing accessories, shoe, and jewelry retailers (+23,000); general merchandise retailers (+13,000); and health and personal care retailers (+7,000). Building material and garden equipment and supplies dealers lost jobs (-11,000). Overall, employment in retail trade changed little in 2024, following an average monthly increase of 10,000 in 2023.
Executive Search in 2024: Challenges, Trends, and Hopes for a Hiring Resurgence in 2025
For many search firms in almost all industry segments, 2024 has been a tough year. There are many reasons for the recent downturn, and some firms have experienced a dip in revenues for even longer, according to Tim Tolan, founder, chairman, and managing partner of The Tolan Group. “Lots of changes are on the horizon for 2025 on the hiring front, and search firms are waiting with bated breath while hiring decisions are on hold, and draft fee agreements are (still) sitting in DocuSign waiting to be signed,” he said. “Decisions are dragging, as are active search engagements, as hiring managers and leaders struggle to make hiring decisions in the environment, we are all trying to navigate.”
In the Hunt Scanlon 2024 Executive Recruiting State of the Industry Report, the numbers reflected a double-digit downturn in demand for executive recruiting, with the private equity sector being the most affected. “We’ve seen and experienced that firsthand, but we feel positive changes are on the horizon,” Mr. Tolan said.
• Government employment continued to trend up in December (+33,000). Government added an average of 37,000 jobs per month in 2024, below the average monthly gain of 59,000 in 2023. Over the month, employment continued to trend up in state government (+10,000).Employment in social assistance increased by 23,000 in December, mostly in individual and family services (+17,000). Social assistance added an average of 18,000 jobs per month in 2024, below the average increase of 23,000 per month in 2023.
• Employment in leisure and hospitality changed little in December (+43,000). Leisure and hospitality added an average of 24,000 jobs per month in 2024, about half the average monthly gain of 47,000 in 2023.
• Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; transportation and warehousing; information; financial activities; professional and business services; and other services.
Related: Hiring Confidence Slows as Employers Steer Economic Headwinds
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
