The US job market has shown resilience after being impacted by hurricanes and strikes, with the economy adding 227,000 jobs in November. This marks a rebound from the previous month’s estimates, which were revised up to 36,000. Economists had forecast payrolls would gain 200,000 jobs.
Strong consumer spending is driving the economy, with solid wage growth last month. The labor market has shown signs of stabilization, which could allow the Federal Reserve to cut interest rates again this month. The unemployment rate rose to 4.2%, but economists believe this is a moderation of demand and inflationary pressures over time.
Industry-specific job gains include healthcare (54,000), leisure and hospitality (53,000), government employment (33,000), and manufacturing (22,000). The construction sector showed slow rebuilding efforts in areas devastated by hurricanes.
Despite the labor market’s resilience, economists caution against putting too much weight on the divergence between payrolls and household employment. They argue that household employment should have rebounded after being held down by storms.
The average hourly earnings increased 0.4% last month, while aggregate payroll income jumped 0.8%. The economy is expected to continue expanding at a healthy pace, but inflation remains above the central bank’s 2% target and uncertainty about President-elect Donald Trump’s policies looms large.
Source: https://www.reuters.com/world/us/us-job-growth-accelerates-november-unemployment-rate-rises-42-2024-12-06