U.S. Private Sector Adds 400,000 Jobs in Q4 2022 Despite Decrease in Gross Job Gains

The U.S. private sector witnessed a net gain of 400,000 jobs during the fourth quarter of 2022, according to the latest report by the U.S. Bureau of Labor Statistics. Despite a decrease in gross job gains, the difference between job gains and losses resulted in a modest expansion of employment. The service-providing industries emerged as the primary drivers of job growth, contributing significantly to the positive outcome.

During the period from September 2022 to December 2022, the total gross job gains from opening and expanding private-sector establishments were 8.0 million. However, this marked a decrease of 769,000 jobs compared to the previous quarter, reflecting a slowdown in hiring activities. Gross job gains represent 6.2 percent of private-sector employment, indicating a challenging employment landscape during the said quarter.

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The report also revealed that gross job losses from closing and contracting private-sector establishments rose to 7.6 million, indicating a setback in employment stability. This figure represents an increase of 133,000 jobs lost from the previous quarter, underscoring the uncertainty faced by businesses during the mentioned period.