The labor market continues to remain tighter than expected as the economy created almost 200k jobs in November, according to the latest data from the Bureau of Labor Statistics.
- Total nonfarm payroll employment increased by 199,000 in November, up from 150k in October and the third-best month since July.
- The unemployment rate unexpectedly fell to 3.7% in November, down from 3.9% in October and the lowest level since July.
Beat The Street. Economists projected that the economy created 180k jobs in November with the unemployment rate holding at 3.9%.
Broad Gains. While healthcare did add the most jobs in November, the job gains were spread across multiple industries. Healthcare added 77,000 new jobs in November followed by government (+49k), leisure & hospitality (+40k), manufacturing (+28k), and social assistance (+16k).
- On the flip side, retail trade fell by 38,000 in November and transportation & warehousing lost 10,000 as well.
Wages. Average hourly earnings for all employees on private nonfarm payrolls rose to $34.10 in November, up 0.4% from October and the biggest gain since July.
- Wages are up now up 4.0% from the same time last year which, assuming consumer price growth slows to 3.1% would the seventh straight month wages have outpaced inflation.
Slight Revision. Total nonfarm payroll employment for September was revised down by 35,000 to 262,000 while October remained at +150,000.