The U.S. economy created more jobs than expected with 227,000 new jobs in November, according to the latest data from the Bureau of Labor Statistics, far exceeding economists’ forecasts of 200,000.
- This marks a sharp rebound from October’s revised 36,000 gain and ranks as the second-best month since April.
- Despite the strong hiring, the unemployment rate ticked up slightly to 4.2%, compared to 4.1% in the prior two months.
Job Growth: Health care led the way with 54,000 new jobs, closely followed by leisure and hospitality, which added 53,000. Government and transportation equipment manufacturing each contributed 33,000 jobs.
- On the downside, retail continued to struggle, shedding 28,000 jobs in November.
Wage growth held steady, with average hourly earnings rising 0.4% for the month to $35.61, matching increases seen in three of the past four months.
- Year-over-year, wages were up 4.0%, slightly above the 3.9% economists had expected.
Revisions to prior months’ data added to the positive tone. September’s job growth was adjusted up by 32,000 to 255,000, and October’s was revised higher by 24,000.
Market reactions were muted, with the yield on the 10-year Treasury note falling three basis points.
What They’re Saying: Joseph Brusuelas, RSM US LLP Principal & Chief Economist, said on Twitter “Bottom line is we are getting a very stable pace of hiring in the labor market & this supports a Fed rate cut at its December 18, 2024 meeting.”
- Mohamed A. El-Erian, President of Queens’ College, told Bloomberg “This was a somewhat strong report…The Fed will be comfortable cutting by 25 basis points”
Bottom Line: Stronger-than-expected job growth in November underscores a resilient labor market, but the slight rise in unemployment keeps the report balanced. The Fed remains on track for its anticipated rate cut, with little in this data to disrupt its current policy direction.
