The US job market has bounced back from a sharp decline in October, with employers adding 227,000 new jobs in November. The Labor Department report showed significant growth in industries such as healthcare, restaurants, and bars.
The strong rebound comes after disruptions caused by major storms and labor strikes. In October, jobs growth dropped sharply due to these events. However, the latest figures suggest that the weakness was largely temporary.
Analysts expect a rate cut from the Federal Reserve when officials meet this month, citing a rise in the unemployment rate. However, Federal Reserve Chairman Jerome Powell has expressed caution, stating that the economy is growing healthily with full employment and consistent wage growth.
Some economists warn of the risk of inflation, given the 4% average hourly pay increase over the past 12 months. Diane Swonk, chief economist at KPMG US, says the Fed needs to be cautious due to uncertainty about President-elect Donald Trump’s tax and tariff plans.
The jobless rate rose slightly to 4.2%, but Powell believes the macroeconomic backdrop remains positive. The Fed will carefully consider its next move to address concerns about inflation and the impact of upcoming policies on the economy.
Source: https://www.bbc.com/news/articles/c5y4p12v4m8o