The pace of job growth in the US has started to accelerate rapidly.
Job Growth Trends in the US
In December, 333,000 jobs were created, followed by another 353,000 in January 2024. This is well above the 2010 - 2019 long-term trend of 200,000 and roughly in line with the rate of job growth from June to November 2023, i.e. job creation has increased 1.7 times since December.
The gap between the potential 2010-2019 trend extrapolated to 2024 and the actual data has narrowed to 3.5 million employed and 4.2 million jobs a year earlier, meaning the growth rate is higher than the long-term rate.
The U.S. is now creating about 3 million jobs a year, and from 2017 through 2019 the average annual pace was about 2.1 million jobs.
The labor market, according to official statistics, looks strong with almost all sectors showing job gains over the last year, where almost 1.5 million jobs were added in the health care sector - 1 million, food service - 0.3 million and another 0.2 million in the culture, sports and entertainment industry.
Employment Declines in Specific Sectors
Employment declines: warehousing and logistics - 53 thousand, where jobs will increase strongly in 2020 - 2021 and information and communication (includes mail), where the decline will be 35 thousand.
Compared to pre-recession January 2020, mining and quarrying is down 7.8% or 54 thousand, food services is down 0.9% or 126 thousand and other services are down 1.1% or 63 thousand. Together, these sectors generate more than 20 million jobs or less than 13% of total employment.
Conclusion
In conclusion, the United States has seen a notable surge in job growth, with 333,000 jobs created in December and 353,000 in January 2024, exceeding the long-term trend of 200,000 jobs per month between 2010 and 2019. This accelerated pace of approximately 3 million jobs per year is a positive sign for the labor market, reflecting strength in a variety of sectors, including health care, food processing, culture, sports, and entertainment. However, it is worth noting that some industries, such as warehousing and logistics, and information and communications, are experiencing a decline in employment. Overall, the U.S. labor market looks robust and promising.