A Visual Guide to Job Opportunities in December 2022

Health care and social services were the biggest job creators last month, with a combined gain of more than 74,000 jobs.

January 6, 2023

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The December jobs report showed strong growth in key service sectors, beating expectations once again. This continued growth is a positive sign for the economy as a whole.

Health care and social services were the biggest job creators last month, with a combined gain of more than 74,000 jobs, according to the latest report from the Bureau of Labor Statistics. Ambulatory health care services led the way, with an increase of 30,000 payrolls.

The leisure and hospitality industry added 67,000 jobs in August, while construction added 28,000.

Health care and hospitality are both showing signs of recovery, but they are still not back to their pre-pandemic levels, according to Julia Pollak, chief economist at ZipRecruiter. Pollak added that both sectors look poised for long-term growth due to changing consumer trends and an aging population.

Retail trade and the transportation and warehousing sector also posted slight gains after shedding jobs in the previous two months. This is a positive sign for the economy, as these sectors are key drivers of growth.

The most notable aspect of the report for investors was lower wage growth, which could be an indication that the Federal Reserve's efforts to bring down inflation are effective. The central bank is trying to achieve a soft landing, in which wages and inflation decline without a significant increase in unemployment, but has made it clear that inflation is its top priority.

One of the signs that the labor market might be softening slightly is moderating wage growth. This is something that many economists are watching closely, as it could be an indication of an impending economic slowdown or contraction.

"The labor market is very fragmented, with some sectors doing well while others are struggling. This is likely to continue into 2023, with interest-rate sensitive sectors like manufacturing at high risk. Leisure and hospitality has carried the weight so far, but that will depend on consumers' ability to continue spending."

The information sector lost 5,000 jobs, which may be due to layoffs at tech companies.

The professional and business services sector saw the largest decline in employment, shedding 6,000 jobs. This was driven by even larger losses in the temporary help services category, which could be a precursor to layoffs elsewhere, said Pollak.

Pollak said that while the report has encouraging signals when looking back, the leading indicators are more worrying.