US Payrolls, Wages Pick Up in Jobs Report Dotted With Caveats

US job growth picked up in December and wage gains exceeded expectations in a mostly solid report that included some caveats about the strength of the labor market.

Nonfarm payrolls increased 216,000 after downward revisions to the prior two months, a Bureau of Labor Statistics report showed Friday. The unemployment rate held at 3.7%, while average hourly earnings rose 0.4% from a month earlier.

The December figures cap a year where the labor market moderated from its breakneck post-pandemic recovery without sinking into a downturn that was widely forecast earlier in 2023. Despite Federal Reserve interest rates at a ...