US hiring solid but wages cool, giving Fed room to slow rate hikes

The US labour market stayed strong last month and wage gains cooled, boosting hopes the economy will dodge a recession and giving the Federal Reserve room to slow interest-rate hikes.

Non-farm payrolls increased 223,000 in December, capping a near-record year for job growth, a Labor Department report showed on Friday. 

The advance followed a 256,000 gain in November.

Average hourly earnings rose 0.3 per cent from a month earlier and 4.6 per cent from December 2021 after November’s previously eye-popping gain was revised lower. The deceleration is likely welcome news for Fed officials, who see wage pressures, particularly in the service sector, as a key hurdle to achieving their 2 per cent inflation goal.