US Unemployment Rate Drops to 5.6% in December

WASHINGTON, DC—The US labor market continued its recovery in December, adding 252,000 jobs to the nation's payrolls. The unemployment rate declined to 5.6%.

The professional and business services, construction, food services, health care, and manufacturing all registered gains.

Following the 5% gain in GDP for the fourth quarter, today's labor stats add to the growing pile of statistical evidence that the US economy is on solid footing. "Today's job's report – again – was very strong and shows the labor market is maturing and economy performing soundly," said National Retail Federation Chief Economist Jack Kleinhenz. "It is the largest increase in employment since 1999."

The steadily improving jobs numbers make a rise in interest rates by the Federal Reserve Bank almost inevitable; indeed the consensus before these numbers were released was that the Fed would start increasing its federal funds rate by mid-summer. Now, said Kleinhenz, "the Federal Reserve appears to have more runway for its 'liftoff'" of short-term rates."

Of course, once one economic boogeyman is vanquished others inevitably rise to take their place. The growing specter of global inflation, dropping oil prices and economic unrest in Europe are all on the list of concerns of US economists. The turmoil in the bond market also doesn't boost confidence—rising prices traditionally point to upcoming economic turbulence.

Back to the labor market though: the latest numbers are clearly good news for the commercial real estate markets.

• Employment in professional and business services rose by 52,000 in December, following monthly job gains of 61,000 for the year.

• Construction added 48,000 jobs in December, well above the employment gains in recent months.

• Employment in food services and drinking places increased by 44,000; the industry added an average of 30,000 jobs per month in 2014.

• Health care added 34,000 jobs in December.

• In December, manufacturing employment increased by 17,000.