The US economy added 227,000 new jobs in November, beating expectations of 220,000. The unemployment rate rose to 4.2%, despite severe weather and labor strikes negatively impacting the October report. In a revised October report, 36,000 jobs were created, instead of the initial 260,000 reported.
The Labor Department’s Bureau of Statistics data indicates a “remarkably calm labor market” after accounting for October’s distortions. Job growth in September was also revised higher, with the economy adding more than initially reported over those two months.
Wage growth rose 0.4% in November, in line with October’s increase and higher than expected. Wages increased by 4% compared to the prior year, exceeding forecasts of a 3.9% rise. The labor force participation rate fell to 62.5% in November, down from 62.6% in October.
Temporary help services employment rose modestly in November, marking a turnaround after a loss of over 33,000 jobs in this industry the prior month. The Federal Reserve is expected to cut interest rates for the third time this year at its Dec. 18 meeting. Markets are pricing in an 87% chance of a rate cut, up from a 66% chance seen a week ago.
Economists argue that the November jobs report should not change the expectation of interest rate cuts. The data is seen as being in line with what the Fed was looking for and comfortable with to ease policy at least at the December meeting.
Source: https://finance.yahoo.com/news/us-economy-adds-227000-jobs-in-november-unemployment-rate-rises-to-42-as-labor-market-rebounds-133402055.html