Hiring bolsters confidence in economy

Associated Press

WASHINGTON

U.S. employers are showing more confidence than they have since the Great Recession began and probably will propel the economy in 2015 to its fastest growth in a decade.

December’s job gains capped a stellar year for hiring that saw nearly 3 million jobs created, the most since 1999. The acceleration put further distance between the steadily strengthening American economy and struggling nations overseas.

“Last year was a truly breakout year for the labor market,” said James Marple, an economist at TD Securities. “Businesses are increasingly looking to hire.”

Friday’s report from the Labor Department showed that employers added 252,000 jobs in December and 50,000 more in October and November combined than the government previously had estimated. The unemployment rate dropped to 5.6 percent from 5.8 percent in November. The rate is now at its lowest point since 2008.

The government’s report did point to some weaknesses, notably in Americans’ paychecks, which have barely kept ahead of inflation during the 51/2-year recovery. In December, average hourly pay actually fell.

“The continued listless performance of hourly earnings is an ongoing frustration,” said Richard Moody, an economist at Regions Financial.

And one reason the unemployment rate fell last month had nothing to do with more hiring: Many of the jobless gave up looking for work and so were no longer counted as unemployed.