US employers added 216,000 jobs in December, a surprisingly strong increase that fuels doubt as to when the Federal Reserve will begin cutting rates this year.
Last month’s payroll growth came in over November’s higher-than-expected 199,000 advance — and well ahead of the 170,000 economists expected, according to Refinitiv data.
The figure marks an average monthly payroll gain of 232,000 over the previous 12 months — a strong figure considering the economy was gripped with stubbornly high inflation and the highest borrowing rate Americans have seen in 22 years.
It reinforces the notion that the Feds not going to be in a rush to cut rates. former New York Fed President William Dudley told Bloomberg on Friday.
Dudley added that the economys doing pretty well and that May is more likely for the Fed to start cutting.
“Theyll need to see some signs that the economy is slowing,” Dudley said. “The wage trend for now is something that is likely concerning to policymakers.”
The Labor Department said employment continued to trend up in government, which saw the biggest gain of 52,000 in December — followed by health care, social assistance, and construction, the Labor Department said on Friday.
Only two industries lost jobs: transportation and warehousing, which dipped 23,000 last month.
The Labor Department’s data revised November’s payroll gains down by 26,000, while October’s figure was revised down by 45,000.
The Fed has lifted the benchmark federal funds rate to a 22-year high, between 5.25% and 5.5%, in hopes of tamping down inflation to its highly-coveted 2% target.
But at the minutes of its December meeting released Wednesday, Federal Reserve officials indicated that interest rates were at or near their peak when they voted to leave the rate unchanged last month but offered few clues as to when they might implement cuts.
Almost all participants indicated that a lower target range for the federal funds rate would be appropriate by the end of 2024, said the minutes, with a number of participants highlighting increased uncertainty about how long strict monetary policy would need to be maintained.
Data released by the Bureau of Labor Statistics on Friday also noted that the unemployment rate stayed the same, at 3.7%, a tick lower than the 3.8% rate Refinitiv economists also predicted.
Average hourly earnings — a key measure of inflation — increased 15 cents, or 0.4% for the month, to $34.27. Over the past 12 months, hourly earnings are up 4.1%.
The wage advance comes just after New York’s minimum-wage pay bump took effect, lifting the minimum wage in New York City, Long Island, and Westchester County $1, from $15 to $16.
In the remainder of New York State — which is one of 22 states getting minimum wage hikes in the new year — the new minimum wage is $15, up from $14.20.
A separate report released by the Labor Department on Tuesday showed that job openings unexpectedly slowed to 8.7 million at the end of November, the lowest level since March 2021.
The figure marks a decrease from the downward revised 9.3 million openings reported the previous month, a signal of shaky confidence in the job market.
Though the dip came out of the blue for economists, it backs up data recently released by American employment website Indeed, which found that as of Dec. 29, 2023, open positions on the site declined more than 15% from a year earlier.
Following the release of the latest Consumer Price Index in November — which tracks changes in the costs of everyday goods and services and showed that US inflation rose 3.1% — Fed chair Jerome Powell said the historic tightening of monetary policy is likely over.
Powell dovetailed the report with projections from all 19 policymakers that showed near unanimity that borrowing costs would fall in 2024 — as many as three times.
While Fed policymakers did not want to take another rate hike off the table, it is no longer the central banks base case, he said in remarks made in a press conference following the end of the central banks final policy meeting of 2023.
December’s CPI report is set to be released on Jan. 11.
Central bankers will decide on whether or not to keep interest rates steady, between 5.25% and 5.5%, following their next two-day meeting, which will conclude on Jan. 31.
If you know a teacher, or you are a teacher, you’ll understand that many in the profession consider their jobs one of the best in the world, while also acknowledging it can be one of the most stressful.
Teaching in a war zone takes it to another level on both fronts.
But imagine teaching in a war zone in say the London Underground or the Paris or New York metros?
Well, that’s exactly what is happening in Kharkiv, Ukraine’s second largest city – a city attacked by Russia on a constant basis.
In 2023, the authorities banned children from being taught in regular school buildings here because of the threat they were under from missile strikes.
So Kharkiv city and its education department started working on a plan.
More on Ukraine
Related Topics:
That plan has concluded with the construction of six schools in six metro stations, teaching 4,800 children daily whose families haven’t fled the war.
Intrigued by this new educational experiment, as it’s still considered, we were told to meet at the University metro station in the centre of the city and wait to be taken to the school.
Soviet-era metro stations, and particularly the platforms, are universally grand and ornate, although Ukraine’s are slightly more modest.
Pedestrian walkways though are always crammed with florists, newspaper stands, mobile phone shops and cafes, and Kharkiv’s are no different.
What is different though is that next to the main platform entrance, an adjacent passageway has been sealed off by a white wall with three doors built into it.
We were ushered inside, past a guard and into a concourse with two desks.
In front of us, we could see a wide staircase leading to a long corridor. Above us, large, shiny silver metal tubes stretched into the distance, pumping in air from above ground.
Lining the corridor, we could see a series of white interconnecting cabins, all brightly lit, and from them, we could hear the sounds of children laughing, music, and teachers conducting class in this strange subterranean school.
Perhaps the only school in the world with one corridor.
A door to one of the classes opened, and in pairs, a class of six and seven-year-olds emerged – their teacher at the front and an assistant at the rear.
They’re heading to the bathroom for a toilet break, the staff must keep an eye on them.
If any of the children were to make it out of the school, they could easily get lost in the underground system.
The pupils are spread across seven classrooms with a mix of yellow and green desks and chairs, and walls decorated with bright pictures like rainbows, sunshine and sunflowers, to try to create a cheery atmosphere.
“At first, the children were bewildered by studying here, it felt unfamiliar to them, but interacting with each other and with their teachers helped them to adapt,” Iryna Tarasenko from Kharkiv’s education department told me.
Iryna is showing me around the school. They feel it’s their way of contributing to the war effort.
She said: “In the summer of 2023, the Defence Council didn’t permit children to study in regular school buildings, so, we had to find a solution. This is our frontline – our educational frontline.”
There are of course health concerns for both the teachers and the pupils spending so much time underground, so medical examinations are done on a regular basis.
It is an opportunity for doctors and behavioural specialists to monitor the effects of this war on them.
Dmytro Mitelyov is the neurologist on duty monitoring the children’s behaviour, checking for any signs of stress – physical and mental.
He gently asks each child how they’re feeling, and asks if they have any aches and pains.
“These are children who haven’t left Kharkiv since the war began, they live in a constant state of stress, multifaceted stress caused by a range of factors. They are exposed to things they see and hear, like alarms, explosions, and they feel it all,” Dmytro told me.
“When these children grow older, all the trauma they’ve endured during their formative years can, unfortunately, leave a lasting and serious imprint on their mental health. They haven’t had a healthy, carefree childhood – the kind where they can learn, play, and feel safe as children normally would.”
As the first group’s school day ends, children from one of Kharkiv’s most bombed districts, wrap up warm before being led to the surface to catch a school bus to their old school – which was hit by a missile.
It’s still where they meet their parents for normal pick-up.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
We jump on the bus with them for the journey past destroyed government buildings, shopping centres and restaurants.
When the air raid suddenly sounds, I look around to see how the children and teachers on this bus will react.
They barely flinch it’s so common.
“People have, to some extent, adapted,” one of the headmistresses, Olena Nikolienko, said.
“If we see missiles coming, heaven forbid, we’ll stop near a designated shelter, following our evacuation plan, and that’s where the children will go for cover.”
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
Remember, these children are safe underground at school, up here they are not.
During the bus ride, 10-year-old Alisa began quietly sobbing. Her teacher told me her grandfather was killed four months ago on the frontline, and since then she has been prone to tears.
Alisa’s teacher comforted her and told her everything would be ok.
It feels like everyone here has to carry their own sadness.
Everyone.
Please use Chrome browser for a more accessible video player
0:18
‘Ukraine war will end sooner under Trump’
Parents, standing in the first snowfall of the season, greet the children as they get off the bus.
The kids run off the bus, and start throwing snowballs at each other, enjoying this precious moment.
Joe Biden has met with Xi Jinping for the last time as US president, where the Chinese leader said he is “ready to work” with Donald Trump.
Speaking at the Asia-Pacific Economic Cooperation forum in Lima, Peru, Mr Biden said the US and China’s relationship should be about “competition, not conflict”.
“We haven’t always agreed, but our conversations have always been candid and always been frank,” he said.
“We’ve never kidded one another. These conversations prevent miscalculations, and they ensure the competition between our two countries will not veer into conflict.
“We’ve been level with one another. I think that’s vital.”
But despite Mr Trump’s proposed measures, Mr Xi said his country’s goal “of a stable, healthy and sustainable China-US relationship remains unchanged”.
More on China
Related Topics:
“Our commitment to mutual respect, peaceful coexistence and… cooperation as principles for handling China-US relations remains unchanged,” he added.
The Chinese president then said the country is “ready to work with the new US administration to maintain communication, expand cooperation and manage differences, so as to strive for a steady transition”.
Neither Mr Xi nor Mr Biden responded to a question about whether there were concerns about Mr Trump’s proposed tariffs.
The president-elect has also named several China hawks to his transition team, such as Senator Marco Rubio as secretary of state and Representative Mike Waltz as national security adviser.
Former heavyweight champion Mike Tyson says the health scare in June, which forced the postponement of his boxing match with Jake Paul, almost cost him his life.
“I almost died in June,” Tyson wrote on X, adding that he “had 8 blood transfusions. Lost half my blood and 25lbs in hospital”.
The 58-year-old, who lost to the YouTuber-turned-boxer in a unanimous points decision in Texas, tweeted that the situation was far worse than people had realised.
Following Tyson’s recovery, after reportedly suffering an ulcer flareup, he reflected on the result of the fight.
“This is one of those situations when you lost but still won… no regrets to get in the ring one last time,” he said.
That contrasts with Tyson’s comments after the match in which he refused to confirm whether it would be his last fight.
“It depends on the situation,” Tyson said before suggesting a fight with Paul’s older brother, Logan Paul, who was standing near him in the ring.
More on Boxing
Related Topics:
Critics argued that the revised match – which involved fewer and shortened rounds, as well as heavier gloves – fell short of entertaining.
Please use Chrome browser for a more accessible video player
0:30
Paul beats Tyson by unanimous decision
Some claimed it appeared more like a glorified sparring session.
Advertisement
It was Tyson’s first sanctioned pro bout since 2005, when he lost to Kevin McBride and then went into retirement – only briefly reappearing for an exhibition match in 2020 against Roy Jones Jr.
Paul has plenty to prove
Paul, 27, still has plenty to prove. The social media influencer wants to be a championship fighter and compete for a championship belt within two years. “I think it could happen in the next 24 months,” Paul said.
“I truly, truly believe in my skills and my ability and my power. And the cruiserweight division is seemingly open for the taking on that timeline,” he added.
The only professional match he has lost so far has been to Tommy Fury, the less-accomplished brother of former heavyweight champion Tyson Fury.
But there are questions about when Paul will fight a contender in his prime, as opposed to former champions or mixed martial artists.
Intriguingly, in the days before his fight with Tyson, Paul mentioned super middleweight champion Canelo Alvarez, considered one of the best boxers in the world.
According to reports, the Texas bout earned Paul $40m (£31.7m) versus $20m (£15.8m) for Tyson.
Netflix said 60 million households worldwide viewed the contest on its streaming platform, and nearly 50 million tuned in to watch the undercard which saw Ireland’s Katie Taylor beat Puerto Rico’s Amanda Serrano.
Even so there were some technical glitches. More than 90,000 users reported problems on Netflix at its peak, according to the website Downdetector, which tracks outages.