The U.S. labor market showed robust recovery in November, adding 227,000 jobs and outperforming economists’ expectations of 200,000, according to data released Friday by the Labor Department. However, the unemployment rate ticked slightly higher to 4.2 percent, up from 4.1 percent in October.
This improvement follows a weak October jobs report, with the initial estimate of 24,000 jobs added revised upward to 36,000. September’s figures also saw an upward revision, bringing the total for the two months to an additional 56,000 jobs previously unaccounted for.
Labor Market Bounces Back
Economists noted that temporary factors like strikes and adverse weather conditions contributed to October’s sluggish performance. The November data underscores the labor market's resilience. Elise Gould, senior economist at the Economic Policy Institute, remarked, “The latest jobs data says the labor market is still going strong. After the softer numbers in October from the weather and striking workers, November bounces back with strong job growth along with upward revisions.”
On a three-month average, the U.S. economy has added 173,000 jobs per month, according to Gould.
Leading the job gains in November were the health care sector, which added 72,300 jobs, followed by hospitality with 53,000 and durable goods manufacturing at 26,000.
Average hourly earnings grew by 4 percent over the past year to $35.61, outpacing the 2.5 percent increase in the headline consumer price index, which reflects easing inflation pressures.
Challenges Remain
Despite the encouraging topline figures, concerns persist. The employment rate for prime-age workers (ages 25 to 54) fell for the second consecutive month, dropping to 80.4 percent in November from 80.9 percent in October. This decline caught the attention of economists like Skanda Amarnath, director of the Employ America think tank, who flagged it as a “sizable chunk” to lose in a single month.
Unemployment disparities also widened, with the jobless rate for Black workers rising by 0.7 percentage points to 6.4 percent, tying its highest level since February 2022. Women’s unemployment also rose to 4.2 percent, a similar high.
Fed’s Next Move
The November jobs report comes as the Federal Reserve prepares for its final policy meeting of the year next week. The central bank is expected to lower interest rates by a quarter-point, reducing its benchmark range to 4.25–4.5 percent. The move follows a year of aggressive rate hikes to combat inflation, which has now eased closer to the Fed’s 2 percent target.
Markets are watching the Fed’s actions closely, as its policies aim to balance robust economic growth with controlling inflation. The latest jobs data may support the Fed’s decision to ease monetary policy further.
.jpg)
