US NFP: US Jobs Data Surprises to Upside with 256,000 Filled Roles in December

Hiring smashed consensus views in December but 2024 had a slower pace than 2023 with about 780,000 fewer jobs.

• The latest jobs data is in and it’s a bumper readout. America’s employers tapped 256,000 workers to join the economy in December, blowing past the 156,000 expected by analysts. The nonfarm payrolls figure USNFP, also topping November’s 227,000 hires, indicated a much hotter-than-expected growth pace but the annual clip marked a pronounced slowdown.
• The US labor market added 2.2 million jobs in 2024 — that’s 780,000 fewer than in 2023 when job growth was still in recovery mode after Covid-19. Unemployment for the final month of 2024 dipped to 4.1%, coming below estimates of 4.2% and signaling a hot economy that doesn’t really need lots of interest rate cuts.
• That’s why Treasury yields climbed as traders were downshifting expectations of trims to borrowing costs from the Federal Reserve. The two-year Treasury yield, which tracks interest rate expectations, advanced 0.11% to 4.37%. The benchmark 10-year yield climbed 0.09% to 4.77% — its highest level since November 2023.
• Initial reactions across the board: the US dollar was the main character. It took off and hit a two-year high against a basket of six rival currencies. The greenback’s index soared to 109.98 before coming down a bit. US stocks drifted lower by about 0.8% right off the bat. The tech-heavy Nasdaq Composite slipped the most, declining 1% at the opening bell as traders were pricing in the odds of a slowing rate cut cycle.