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Special Report

Employment Research Brief

January 2024

Pace of Hiring Tapered in 2023, with Implications for
CRE and Financial Markets

December job additions fall short of the monthly average. Employers closed out the year by adding 216,000 positions in the final month, while the unemployment rate remained unchanged at 3.7 percent. Although this was up from the prior two months, it sustains the trend of slowing addition, with December falling below the 2023 monthly average. This presents a sign that while hiring is still strong despite the pressure of high interest rates on company finances, the labor market has begun to cool. Job creation was most prominent in the government, health care, social assistance and construction sectors, while transportation and warehousing noted a decline, illuminating softening labor demand in more cyclical sectors. Government and in-recovery sectors accounted for roughly 151,000 positions.

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