US labor market eyes maximum employment despite underwhelming December payrolls

WASHINGTON: U.S. employment rose far less than expected in December amid worker shortages, and job gains could remain moderate in the near term as spiraling COVID-19 cases disrupt economic activity.

But the Labor Department's closely watched employment report on Friday suggested the jobs market was at or near maximum employment https://www.reuters.com/markets/us/feds-maximum-employment-is-here-not-everyone-has-benefited-2022-01-07. The unemployment rate tumbled to a 22-month low of 3.9% from 4.2% in November. The second straight big monthly decline occurred even as more people entered the labor force. Wages increased solidly, underscoring labor market tightness.