The US jobs market remained resilient in December, making it more likely the Federal Reserve will continue acting aggressively to slow down the nation's inflation.
Non-farm payrolls exceeded expectations slightly, adding 223,000 jobs in December, the Bureau of Labour Statistics (BLS) reported on Friday. A survey of Bloomberg economists had forecast employers would add 203,000 jobs.
Meanwhile, the unemployment rate dipped from 3.6 per cent to 3.5 per cent, a 53-year low.
And wage growth grew by 0.3 per cent, below forecasts of 0.4 per cent.
The Fed has maintained that the tight labour market in the US has contributed to the nation's inflation, which currently stands at 7.1 per cent. A tighter labour market can contribute to inflation as jobseekers are empowered to negotiate for stronger wages, thus leading to increased spending.
Fed Chair Jerome Powell and the central bank have indicated that unemployment will likely have to increase for inflation to be brought under control.
The central bank raised its interest rates seven times last year to a range between 4.25 and 4.5 per cent.
Minutes released by the Fed showed that its members expect interest rates to remain at a high level this year.
“No participants anticipated that it would be appropriate to begin reducing the federal funds rate target in 2023,” the minutes read.
Its benchmark short-term interest rate is forecast to be 5.1 per cent by end of 2023, but persistent inflation and hiring could push the Fed to raise it even higher.
The Fed's actions brought US inflation down from a peak of 9.1 per cent in the summer to 7.1 per cent in November, but the moves have also raised borrowing costs for families and businesses such as mortgages and vehicle loans.
“We still have work to do to bring down inflation, and help American families feeling the cost-of-living squeeze. But we are moving in the right direction,” President Joe Biden said after the report's release.
Employers added 4.5 million jobs in December, down from 6.7 million in 2021, the BLS said.
Notable job gains for the month of December were found in leisure and hospitality, health care, construction and social assistance.
Meanwhile, layoffs have plagued technology companies in recent months.
Amazon announced this week that it would retrench more than 18,000 employees. And Meta chief executive Mark Zuckerberg said the company would cut about 11,000 positions.
Bloomberg contributed to this report
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
