The monthly report said the economy added 211,000 private-sector jobs in November, and September and October increases were revised upward.
Advertisement
“The jobs report was music to the ears of the Federal Reserve”, said Joseph Lake, global economist at The Economic Intelligence Unit. The labor force participation rate – the percentage of Americans holding down or seeking a job – is at a historically low level and has fallen steadily for years.
In fact, October’s job gains were revised up to 298,000 jobs added from 271,000 jobs.
Employers have now added an average 213,000 jobs a month over the past six months. Those gains “really erase the stench of that August and September mess”.
United States job growth increased solidly in November – another sign that the economy is holding up – and for many another reason for the Federal Reserve to raise interest rates soon. With the new data, “a rate hike at the December 15-16 Fed meeting is (almost) a sure thing”.
Most economists say that the labor market has been the strongest element of the US economy, even though wages have been slow to rise.
The jobless rate is in a range many Fed officials see as consistent with full employment in any case.
A surprisingly strong October report has already fueled expectations for a December rate hike.
The U.S. economy added 3.1 million jobs last year, or an average of about 258,000 a month, but with one month left in the year, the 2015 number is about 2.3 million – about 210,000 per month. In November, average hourly wages were up 2.3 percent from a year earlier.
Employee pay increased at a steady pace last month.
Yet Fed Chair Janet Yellen said this week the economy needs to generate just 100,000 jobs a month to keep up with growth in the working-age population, and keep the unemployment rate trending down.
The rate of unemployment also held steady at 5% while wage growth moderated from the previous month.
Despite unimpressive housing starts, construction hiring was strong with 46,000 jobs added.
“We believe the hurdle for dissuading the Fed from action at this time is extremely high”, said Michelle Girard, chief economist at RBS in Stamford, Connecticut.
Advertisement
Manufacturing employment, meanwhile, slipped by 1,000 and jobs in mining and logging, which has been hit by the slump in oil investment, fell by 11,000. Retail jobs rose 30,700 and transportation and warehousing employment rebounded after two straight months of declines.
