The US job market has rebounded from hurricane and strike-related disruptions in October, with 227,000 jobs added in November. However, beneath the surface of this positive headline growth, warning signs indicate that American workers may face challenges.
According to the latest data, the unemployment rate increased slightly to 4.2%, while a record number of workers (193,000) dropped out of the labor force last month. The share of employed Americans aged 25-54 fell for the second consecutive month, now standing at 80.4%.
Despite robust job growth, wage growth ticked up in November, which may make some Federal Reserve officials cautious about cutting interest rates too aggressively. However, experts argue that the Fed should pay attention to these cracks in the labor market.
The report’s findings suggest that while the labor market is not yet cause for alarm, it does require closer monitoring. The outlook for policy in 2025 remains uncertain, with mixed signals on inflation and uneven progress on wages, and the prospect of significant changes under a new administration.
Source: https://www.axios.com/2024/12/06/labor-market-unemployment-fed-rates