NORFOLK, Va. — The latest U.S. jobs report, released Friday, shows employers in the country added 216,000 jobs in December 2023, which beats expectations, according to analysts.
Jobs in government, health care and construction saw the biggest growth in December, and the unemployment rate remained steady at 3.7 percent, according to the report.
"I think we have a really strong economy going into 2024," said Dr. Suzanne Toney with the Center for Entrepreneurship, Economics, Finance and Accounting at Hampton University.
Dr. Toney said there's an increased demand in many different industries, and the country saw a 4-percent growth in wages last month.
"A lot of companies are willing to pay people more," she said. "So everyone is concerned about higher inflation rates. And so we're seeing that wages are trying to keep pace with inflation."
News 3's Jay Greene asked Dr. Toney about what recent layoffs mean for the economy. For example, Geico announced last October it would lay off 2,000 people, a 6-percent reduction in its workforce.
"The layoffs in certain sectors have a very small impact when it comes to total employment for the U.S.," she said. "So we're seeing this and we're noticing, you know, certain people in the local economy in certain industries. And so it seems somewhat magnified. But when you're looking to aggregate, the effect is very small and not even enough to impact the unemployment rate."
Dr. Toney noted companies strive to start the new year strong, hence the layoffs toward the end of the year.
"A lot of times what they're trying to do is cut cost. So in cutting costs, a lot of the headcount contributes to the cost," she said. "We're seeing a lot of improvements in technology that can make companies more better equipped, will say, to provide the services to the clients at a lower cost. So they don't need as many people working when they can use technology."
Geico is also one of many companies bring employees back to work following the COVID-19 pandemic. As of Jan. 1, 2024, the insuance company fully implemented a return-to-work policy.
"So that way you have better control over what the employees are doing, which also helps them cut costs," Dr. Toney said.
Lastly, she said 2024 maybe a good year for people seeking jobs.'
"Lately, in this area, we're seeing way more construction jobs, which is also an indicator of a strong economy," she said. "So we're seeing things like that happen. So though we're losing some jobs, we're also replacing and adding jobs at the same time."
