While the US saw a decline in temporary employment in December and the number of total nonfarm jobs added during the month fell below expectations, some signs still point to a strong job market.

“Although the headline job gain of 199,000 in December was below analyst expectations, the previous two months were revised upwards, the unemployment rate declined from 4.2% to 3.9%, and many other macroeconomic variables such as job openings and initial unemployment claims suggest a strong labor market,” according to a perspective by SIA.

Overall, total nonfarm jobs rose by 199,000 month over month in December with total employment of nearly 149.0 million, according to seasonally adjusted data released today by the US Bureau of Labor Statistics. J.P. Morgan economists had forecast total jobs would rise by 450,000.

Nonfarm employment is also still down by 3.6 million compared to its pre-pandemic level in February 2020.

And while total jobs rose, those in the temporary help services industry fell by 1,600, or 0.06%, in December compared to November, according to seasonally adjusted BLS data. However, temp jobs were up 6.38% year over year for a total of approximately 2.78 million.

The temp penetration rate — temp jobs as a percent of total employment — also edged down to 1.87% in December from 1.88% in November.

The BLS noted employment continued to trend upward in leisure and hospitality, professional and business services, manufacturing, construction, and transportation and warehousing.

Leisure and hospitality added 53,000 jobs in December, though it’s still 1.2 million below its February 2020 level. Professional and business services added 43,000 jobs.

Omicron continues to keep many individuals on the sidelines, particularly vulnerable older workers and those with young children, said Andrew Hunter, co-founder and economist at jobs website Adzuna.

“Despite today’s jobs report, I don’t anticipate a major, lasting economic slowdown, and I’m feeling positive about US jobs growth,” Hunter said. “Advertised job vacancies on Adzuna increased for the 11th consecutive month in the US, hitting 8.8 million in December. At a sector level, manufacturing, maintenance, and trade & construction saw particularly strong hiring.”

The monthly jobs report and interactive tool are available to Staffing Industry Analysts corporate members.