The year of 2018 closed on a positive note, capping off a stunning month of job growth in December. Meanwhile, more Americans decided to look for work and also decided to quit their jobs at the year’s end.
Moreover, estimates for November and October were revised up by a total of 58,000.
More people quitting amid a strong job market suggests that more Americans feel they can do better for themselves and are sufficiently confident they can land a new job.
People’s voluntary quitting may also signal a boost to productivity as it gives them a chance to find employment or start a business more suited to their skill set.
Hispanics Still on a Roll
Hispanic unemployment continued a historically low streak, inching down to 4.4 percent and thus matching the record low set just two months earlier, based on BLS data stretching back to 1973. In the data unadjusted for seasonal changes, the Hispanic female unemployment rate dropped to a new historic low of 4.3 percent.Shutdown Impact
Job growth in January is likely to be affected by the current partial government shutdown. About quarter of the federal government doesn’t have money to pay its contractors and its employees won’t get paid as long as the shutdown continues, which may prompt some to quit.Government Jobs
While the private sector’s job market has been on fire under Trump, government employment—including federal, state, and local—has grown at the slowest pace in history, not including years hit by several recessions when the government workforce actually shrank. The BLS data on the subject reaches back to 1939.Holiday Shopping, Gas Prices
The blockbuster December job numbers may have to do with the strong holiday shopping season. Sales rose 5.1 percent to over $850 billion, the highest in six years, according to a Mastercard report on Dec. 26.Trump recently took credit for the falling gas prices, having convinced oil producing countries to pump out more oil earlier this year in preparation for sanctions on Iran’s oil exports. He then handed out sanction waivers to importers of Iranian oil right when his massive tariffs were depressing the Chinese economy, which contributed to reduced expectations for oil demand growth next year.