Job creation in November rebounded after being almost at a standstill the previous month, as the effects of a major strike and severe storms in the Southeast faded, the Bureau of Labor Statistics reported Friday .
Nonfarm payrolls increased by 227,000 for the month, compared with an upwardly revised 36,000 in October and the Dow Jones consensus estimate of 214,000.
The unemployment rate, however, increased slightly to 4.2%, as expected. The unemployment rate rose as the labor force participation rate fell and the labor force itself shrank. A broader measure that includes discouraged workers and those in part-time employment for economic reasons increased slightly to 7.8%.
Job gains were concentrated in health care (54,000), leisure and hospitality (53,000) and government (33,000), sectors which have consistently dominated payroll growth over the recent years.
At the same time, retail saw a decline of 28,000 heading into the holiday season. With Thanksgiving coming later than usual this year, some stores may have delayed hiring.
Workers' wages continued to rise, with average hourly wages up 0.4% from the previous month and 4% year-over-year. Both figures were 0.1 percentage points above expectations.
Stock market futures rose slightly after the report, while Treasury yields were lower.
The report comes with questions about the state of the labor market and its impact on the Federal Reserve's interest rate decisions.
Traders accelerated their bets on a rate cut after the jobs figures were released, with market-implied odds rising above 88% for a quarter-percentage-point cut. when central bank policymakers make their next decision on December 18.
Earlier this week, Fed Chairman Jerome Powell said the generally strong state of the economy allows him and his colleagues to be patient when making policy decisions. interest rate. Other officials said they viewed further interest rate cuts as likely, but subject to changes in economic data.
While inflation is far from its 40-year high by mid-2022, recent months have shown prices drifting. At the same time, the October jobs report and various other reports highlighted a job market that is still growing but slowing.
The household survey, used to calculate the unemployment rate, paints a similar picture to the establishment survey which provides the payroll figure.
According to the BLS, household employment increased by 174,000 over the month even as the labor force contracted by 193,000. The participation rate, which measures the share of the working-age population working or looking for a job, fell to 62.5%, a drop of 0.1 percentage point.
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