Closing out 2024, the economy expanded by 256,000 jobs in December, according to the latest U.S. Bureau of Labor Statistics (BLS) jobs report. December’s strong job growth came from familiar sources like healthcare and leisure and hospitality, while retail experienced notable gains as well, making up for losses suffered in the month prior.
“The holiday season typically boosts employment in sectors like retail and leisure and hospitality as businesses ramp up to meet increased consumer demand,” says Monster Economist Giacomo Santangelo. “Additionally, the healthcare sector continued its robust hiring trend, contributing significantly to overall job gains. The combination of seasonal hiring and sustained demand in key industries likely fueled the strong job growth in December.”
Below, we shared our breakdown of these job numbers along with key takeaways to help employers plan for the months ahead.
So Long, 2024!
2024 was a year of gradual growth and resilience for employers. Despite ongoing global conflicts, natural disasters, escalating potential trade wars, and the ever-growing cost of goods, employment continued to grow each month, albeit inconsistent at times. So while December produced strong job numbers, overall job growth did decelerate in 2024 with about 25% fewer job gains compared to 2023. Meanwhile, the unemployment rate increased from 3.7% to 4.1% year-over-year.
Santangelo says that these job numbers show that employers faced a more challenging hiring environment in 2024 with increased competition for skilled workers and demand for higher wages. “In 2025,” he says, “job growth is expected to continue to decline as economic uncertainties and potential slowdowns in key sectors impact hiring.”
Strong Demand Driving Healthcare Job Creation
In December, healthcare continued to lead the way in hiring for the third consecutive month in the BLS monthly jobs report with gains of 46,000. Looking ahead, Santangelo expects the healthcare sector to continue to dominate job creation in 2025 with the aging population driving much of the demand for healthcare workers, particularly in home healthcare and nursing facilities.
Likewise, job postings on Monster continue to reflect the need for healthcare workers. Active job postings for registered nurses remain #1 overall on site, while other top healthcare positions hiring include:
- Physical therapists (#4 overall)
- Licensed practical and licensed vocational nurses (#6 overall)
- Medical and health services managers (#9 overall)
With demand at an all-time high, Santangelo says, “Healthcare employers, like any employer in a tight sector, can improve hiring by offering competitive salaries and benefits, providing opportunities for professional development, and creating a supportive work environment, as well as developing partnerships with educational institutions to create robust training programs and pipelines for new graduates that can help address the shortage of qualified nurses.”
‘Tis the Season for Leisure and Hospitality Jobs
Despite winter’s chill, the warmth of the holiday season kept hiring hot, hot, hot within the leisure and hospitality industry. Between travel plans and parties, not to mention sporting events and entertainment, employment continued to expand in December with gains of 43,000, according to the BLS monthly jobs report. Meanwhile on Monster, employers hired for top positions within the category, including those for:
- Cooks
- Combined food prep and serving workers
- Waiters and waitresses
For employers planning to hire in the new year, the number of job searches within the leisure and hospitality industry rose 7% in December. Top job searches included those for:
- Cashiers
- Dishwashers
- Bartenders
Holiday Rush Boosts Retail Employment
Following a loss of 28,000 jobs in November, the BLS monthly jobs report showed that retailers made up for it — just in time for Christmas — with a jolly gain of 43,000 jobs in December. According to Santangelo, this shift in employment month-over-month was likely a result of typical seasonal hiring patterns and sales cycles. “November’s decline may have been influenced by early holiday hiring in October, leading to a temporary dip,” he says. “December’s gains reflect the peak holiday shopping season, where retailers ramp up staffing to meet increased consumer demand.”
In January, Santangelo expects retail employment to decline as seasonal positions are phased out following the holiday rush. “Retailers are expected to reduce their workforce to align with lower post-holiday sales volumes,” he says. “However, some businesses may retain a portion of their seasonal hires to manage returns and clearance sales.”
Likewise, Monster data shows that retailers are still hiring, though at a slower pace now that the holiday season has ended. Despite the fact that many retailers have paused or slowed their hiring efforts, however, candidates are still looking for work with the number of retail-related job searches up 4% on Monster over the past month.
Wage Growth Expected to Remain Moderate
Average hourly earnings continued to rise at a steady pace in December. According to the BLS monthly jobs report, wages increased 10 cents (0.3%) in December or 3.9% over the past year. Meanwhile, consumer prices have continued to rise over the past several months, up 2.7% over the past year.
While wage growth is outpacing inflation, many workers feel differently. Monster’s recent Work Watch report shows that many will be hoping for more substantial wage growth in 2025, with 46% expecting a higher salary this year to keep up with the rising cost of living.
With this, Santangelo says employers should expect to face pressure to offer competitive wages to attract and retain talent, especially in high-demand sectors like healthcare and technology. Employers, however, say that these higher expectations are putting strain on their bottom line. “In 2025,” Santangelo says, “wage growth is expected to remain moderate, reflecting the balance between a cooling labor market and persistently increasing consumer prices.”
January is Off to a Strong Start for 2025
Even though job growth is expected to continue to decline in 2025, employers are already off to a strong start in January with the number of active job postings up 20% in the first week alone on Monster. In fact, the majority of employers (67%) plan to continue hiring and filling roles in 2025, according to Monster’s Work Watch report — a positive sign for the labor market.
From a job seeker perspective, “new year, new job” continues to be the mantra for 2025. In the first seven days of the year, job search activity surged, up 43% compared to the week prior. Santangelo says, “Employers should expect a higher volume of applications compared to previous years, driven by both seasonal job seekers and those looking to make career changes. This increased activity will provide employers with a larger talent pool to choose from, potentially easing some hiring challenges.”
Stay Tuned for the Next Monthly Jobs Report
Whether the momentum from the past two months will carry into 2025 remains to be seen. In the meantime, Monster aims to provide employers with the insight needed to move forward. As you plan your hiring strategy over the next month, check out the latest hiring trends and insights from Monster Intelligence.
We’ll see you here again in February when we will release our next take on the monthly jobs report.