The US economy added more jobs than expected in November, with a total of 64,000 new positions, according to data from the Bureau of Labor Statistics. However, the unemployment rate rose slightly faster than anticipated, increasing to 4.6% and marking its highest level in over four years.
Despite the positive employment numbers, the market is still concerned about a slowdown in the US labor market. The recent shutdown of the federal government led to a delay in data release, which may have affected the accuracy of the figures.
Analysts at Goldman Sachs had expected a “large drag” from the deferred resignation program for federal workers but noted that its impact on payroll growth may not be significant. The Federal Reserve cut interest rates by 25 basis points last week, citing concerns about faltering US employment and stable price pressures.
Meanwhile, retail sales figures showed no growth in October, after expanding by 0.1% in September. Analysts attributed the slowdown to lower motor vehicle sales due to the phasing out of Biden-era electric vehicle rebates.
The market is closely watching these economic indicators, as consumer spending accounts for more than two-thirds of overall US economic activity. With interest rates on the line, investors are looking for clues on the trajectory of Federal Reserve policy and its impact on the labor market.
Key statistics:
* 64,000 new jobs added in November
* Unemployment rate rose to 4.6% (highest level in over four years)
* Retail sales figures showed no growth in October
Source: https://www.investing.com/news/economic-indicators/us-economy-adds-64000-jobs-in-november-delayed-bls-data-shows-4410716