ICYMI: Ten Charts That Explain the U.S. Economy in 2023—Chart 4: The Unemployment Rate Stayed Low Despite Falling Inflation

The U.S. economy defied expectations this year. Many forecasters predicted a recession, some even asserting a "100%" probability of a recession. President Biden never believed that was necessary—and he was right.

Instead of a recession, inflation is down to 2% over the last six months, unemployment has stayed below 4% for 22 months in a row, and wages, wealth, and income are all higher now than they were before the pandemic began. While there is more work to do—from lowering prescription drug and energy costs to cracking down on price gouging by banning hidden junk fees and calling on corporations to pass savings on to consumers—this year has brought remarkable progress.

The Council of Economic Advisers is highlighting ten charts that capture the most important economic developments of the past year. They depict an economy growing from the middle out and bottom up—powered by Bidenomics.

Chart 4:

Jobs growth cooled towards a steady & stable pace, while the unemployment rate stayed low despite falling inflation.

Job gains continued at a very strong pace in 2023, although down from the torrid rates seen in 2021 and 2022 immediately following the pandemic recession. Monthly nonfarm payrolls grew by 232,000 per month on average in 2023, 55,000 more jobs per month than the average pace in 2018 and 2019. As a result, total job gains achieved under the Biden administration reached 14.1 million through November 2023. Meanwhile, the unemployment rate has, to date, stayed below 4% for 22 straight months, a run not seen in more than 50 years. This is especially remarkable given the fall in inflation.

Read the full blog here.