The total labor force came in at 164.966 million, up 439,000 from the prior month and a new record high (see sixth chart). If the 63.3 percent participation rate were applied to the current working-age population of 264.844 million, an additional 2.68 million workers would be available.
The December jobs report shows total nonfarm and private payrolls posted additional gains, but the data show the trend in payroll gains is decelerating, and concerns about future payroll gains persist in light of aggressive Fed interest rate increases. Furthermore, labor force participation increased, the total labor force hit a record high, and job cut announcements are trending higher.
Conversely, the unemployment rate dropped back to a multidecade low, the level of open jobs remains high, and the number of available workers is low, suggesting the labor market remains tight despite some signs of loosening.
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