Overview:
Data released by the Bureau of Labor Statistics on Friday suggests that job growth in the healthcare sector may be slowing down. While the overall healthcare sector added approximately 38,000 jobs in December, this figure falls below the monthly average observed over the past year or two.
Yearly Comparison:
Although monthly job growth in healthcare during 2023 averaged higher than the rate in 2022, the December data indicates a dip. The 2023 monthly average stood at 55,000, surpassing the 2022 average of 46,000 jobs per month.
Sector Breakdown:
Healthcare job growth in December was mainly concentrated in ambulatory healthcare services, contributing 19,000 jobs, and hospitals, which added 15,000 jobs. Notably, there were no statistically significant gains in employment within nursing homes and residential care facilities.
Overall Employment Scenario:
Total nonfarm payroll employment experienced a rise of 216,000 jobs in December, maintaining an unchanged unemployment rate of 3.7%. The number of unemployed persons remained steady at 6.3 million, as reported by the BLS.
Other Industries:
Government employment saw an increase in December, along with gains in social assistance and construction. Conversely, sectors such as retail trade, leisure and hospitality, and professional and business services observed limited growth. Employment in transportation and warehousing declined during the same period.
Market Expectations:
The total job growth in December surpassed Dow Jones estimates, which anticipated 170,000 jobs. Economists had expected a slower hiring rate, and the markets were navigating the delicate balance between job creation and inflation control, according to United Press International.
The healthcare sector’s performance in December raises questions about the sustainability of job growth in the industry, and market observers will likely closely monitor future employment reports for further insights.
