U.S. Job Market Surprises with Strong Growth

Clear Facts

• The U.S. economy added 227,000 jobs in November, surpassing expectations of 215,000.
• The unemployment rate slightly increased to 4.2 percent from 4.1 percent.
• Average hourly earnings rose by 0.4 percent, marking a four percent increase compared to last year.

In November, the U.S. job market demonstrated resilience by adding 227,000 positions, as reported by the Department of Labor. This figure exceeded economists’ expectations of 215,000 new jobs, following a challenging October impacted by storms and strikes.

The unemployment rate saw a minor uptick, moving from 4.1 percent to 4.2 percent. This change aligned with predictions that anticipated a slight rise in unemployment.

Revisions to previous months’ data also painted a brighter picture. October’s job growth was adjusted upward by 24,000, reaching 36,000, while September’s figures were revised to show a gain of 255,000 jobs, an increase of 32,000 from earlier estimates.

The private sector contributed significantly with 194,000 new jobs, nearly meeting the forecast of 200,000. However, the retail trade sector faced a setback, losing 28,000 jobs, indicating a softer seasonal hiring trend than usual.

In contrast, the leisure and hospitality sector experienced a robust increase, adding 53,000 jobs, which was above the average for this year. The health care sector continued its steady growth, contributing 54,000 new jobs.

Government employment also saw an increase of 33,000 positions, with state and local governments accounting for 20,000 of these jobs. Manufacturing employment grew by 22,000, closely matching the expected 25,000, rebounding from a loss of 48,000 in the previous month.

Average hourly earnings rose by a notable 0.4 percent, exceeding expectations for a 0.3 percent increase. This rise matched the previous month’s advance and reflected a four percent increase from the previous year.

The average workweek slightly increased to 34.3 hours, up from a revised 34.2 hours in October. This adjustment underscores the labor market’s strength, which has defied earlier predictions of a slowdown.

Despite these positive trends, the quit rate rose in October alongside an increase in job openings, while the hiring rate declined and remains below pre-pandemic levels. Economists remain divided on whether this indicates employer hesitancy or a lack of available workers.

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