Employment climbs in December; unemployment rate rises as well

WASHINGTON — Nonfarm payroll employment rose by 312,000 jobs in December, a larger-than-expected gain, according to the latest figures from the Bureau of Labor Statistics (BLS).

The unemployment rate for December edged up to 3.9 percent from 3.7 percent, largely because of an infusion of people entering the job market, according to the report issued Jan. 4.

The job sectors reporting the largest gains in December included health care (up 50,000 jobs), professional and business services (up 43,000), food services and drinking places (up 41,000), construction (up 38,000), manufacturing (up 32,000) and retail trade (up 24,000), the BLS said.

On Jan. 3, payroll services firm ADP Inc. reported similarly strong job results for December.

According to the ADP monthly report, private sector employment increased by 271,000 jobs for December. Medium-sized businesses (50 to 499 employees) posted the largest gains, with 129,000 new jobs, ADP said.

Small businesses (one to 49 employees) grew by 89,000 jobs, while large businesses (500 employees and up) gained 54,000, the report said.

Goods-producing sectors gained 47,000 jobs in December, according to ADP. Construction grew by 37,000 jobs and manufacturing by 12,000, but mining lost 2,000 jobs, the report said.

The 224,000 jobs gained in service-providing sectors included 66,000 in professional/business services, 61,000 in education/health services and 33,000 in trade/transportation/utilities, according to ADP.

Franchise employment grew by 29,000 jobs in December, including 2,700 in auto parts and dealers, the report said.

The National Federation of Independent Business (NFIB) reported a record percentage of small business owners — 39 percent — with job openings they could not fill, according to the December edition of the NFIB monthly jobs report.

Finding qualified workers is the biggest problem for small business owners going in to 2019, exceeding even taxes and regulations, according to NFIB President and CEO Juanita D. Duggan.

"2018 was a banner year for small businesses in terms of job creation and compensation increases," Ms. Duggan said. "As we begin the new year, small businesses are continuing their focus on attracting and retaining qualified employees."

The Alliance for American Manufacturing (AAM) celebrated December as another strong month for job creation in the manufacturing sector.

"Tough action against trade cheats is helping create new jobs for American workers," AAM President Scott Paul said. "The 116th Congress must keep this growth in mind and support policies that strengthen this trend, such as robust infrastructure investment."