CNN
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The U.S. economy closed out 2024 with another month of massive job growth, adding 256,000 jobs in December.

The unemployment rate fell to 4.1% from 4.2%, capping a year that marked a return to pre-pandemic norms, according to Bureau of Labor Statistics data released Friday.

While the final 2024 jobs report underscores that the U.S. labor market has turned a corner since the pandemic, there is much uncertainty about what 2025 could mean for the labor market’s performance – in part due to President-elect Donald Trump’s possible policy changes in the areas Trade, Immigration, Taxes and Federal Employees.

Including December gains, which are subject to revision, the economy added about 2.2 million jobs in 2024, an average of 186,000 jobs per month. That matches annual totals from 2017 to 2019, but represents a slowdown from the huge gains seen during the pandemic recovery in previous years.

The U.S. has now added jobs for 48 consecutive months, making it the second-longest period of job growth on record.

According to FactSet, economists expected a net gain of 153,000 jobs and the unemployment rate to remain at 4.2%.

U.S. stock futures fell sharply following the better-than-expected report, with Dow futures falling nearly 400 points before settling slightly higher. The 10-year Treasury yield rose to 4.8% as traders fear that robust data and a stronger economy could prompt the Federal Reserve to pause its rate-cutting campaign.

The labor market has demonstrated resilience and stability, recovering from a once-in-a-lifetime pandemic and coping with the dual pressures of rapidly rising prices and high interest rates. Unemployment remains low, labor force participation has increased (particularly among women and prime-age workers), productivity has increased and wage growth has outpaced inflation for 19 months.

The solid labor market has helped boost consumer spending, which in turn has kept the overall economy strong as inflation has eased – and may have set the stage for the rare achievement of a “soft landing” of price stabilization without a recession.

However, the job market is not impenetrable. Job growth is slowing, hiring has fallen and people are staying out of work longer, raising concerns that a sharper slowdown could be on the horizon.

The Fed has cut interest rates by a full percentage point in recent months to ensure maximum employment in addition to lower inflation. However, the pace of cuts is likely to moderate in 2025, the Fed suggested, citing potential inflation risks as well as the underlying strength of the labor market.

This story is evolving and will be updated.