The economy’s strengths were evident in last month’s hiring patterns: Construction firms added 46,000 jobs, the biggest increase in two years. September and October data was revised to show 35,000 more jobs than previously reported.
Advertisement
The unemployment rate was unchanged at 5.0 per cent, the lowest level in seven years, as the economy continues to fend off the drag from the slowdown in the global economy.
Federal Reserve Chair Janet Yellen has the evidence of USA labour market health she wanted in order to raise benchmark interest rates for the first time in a decade this month, but she may have a tougher time selling further hikes.
The U.S. economy generated another month of solid hiring in November, making it highly likely that the Federal Reserve will raise interest rates from record lows this month.
Investors didn’t react much to the jobs report, which was generally in line with expectations.
This comes after last month’s positive report that jobs surged to 271,000.
“Still, economists expect the creation of millions of new jobs and a falling unemployment rate to put more upward pressure on wages in the near future”, MarketWatch said.
Looking at yesterday, obviously a lot of people took positions on euro weakness and so far the reaction has been somewhat muted.
He added: ‘It also means there will be more focus on when the Bank of England will respond.
Specifically, Yellen mentioned that gains in the labor market had “bolstered” and “strengthened” her confidence that inflation would return to the Fed’s 2 percent target over time.
As the government prepares to issue the November jobs report, a key question remains unanswered: Is the USA job market finally healthy enough to lift Americans’ long-stagnant pay? Figures from the payroll company ADP show private sector employers added 217,000 jobs in November – the most for five months.
Over the past 3 months, job gains have averaged 218,000 per month, according to the Labor Department. Construction spending has jumped to the highest level in eight years, boosted by more home-building and development of more roads and infrastructure.
It increased to 9.4 percent in August 2009, a 30-year high. November job gains occurred in general merchandise stores (+12,000) and motor vehicle and parts dealers (+9,000).
Advertisement
The good news on employment gains in November was also sweetened by revised estimates of job gains in the previous two months, Gary Burtless, a senior fellow at the Brookings Institute, wrote in an article Friday. It’s still below the roughly 3.5 percent annual gain consistent of a strong economy. In addition, some oil and gas companies have announced layoffs that will not be implemented until 2016 or beyond, so it’s fair to say the industry may see more job losses next year until the market bounces back.
