The Labor Department revised up previous two months’ job gains, with the employment gains in September and October combined 35,000 more than previously reported.
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Over the past 3 months, job gains have averaged 218,000 per month, according to the Labor Department.
“As the Fed considers the first rate hike since March 2006, this jobs report will surely bolster the argument for an increase in mid-December”, he says.
But earnings data remained unimpressive, eking out a 0.2% monthly gain compared with October’s 0.4% increase.
After this month, the strong amounts could pave the method for the primary United States interest rate rise in close to 10 years.
US Fed chair Janet Yellen had already said this week she was looking forward to a rate hike and after the 211,000 jobs created in November, nearly universally, commentators said the end of the next Fed meeting on 16 December would be the date. Factories shed 1,000 jobs. Many Fed officials see this range as steady with full employment.
“November’s gain of 211,000 jobs, coupled with upward revisions to October and September, confirms the Fed’s view that the labor market remains robust and that wage growth could accelerate in 2016”, Levanon said. Some economists point to the lagging pay as evidence that the job market isn’t as healthy as the low unemployment rate would suggest. Construction added 46,000 jobs, while health care and business services each gained over 24,000 new positions.
November’s job report nailed it.
Separate figures also highlighted an impact to the economy from those factors, with the U.S. trade deficit widening in October as exports fell to their lowest level in three years. “Over the past 12 months, these two industries have added 85,000 jobs and 71,000 jobs, respectively”.
“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. The solid hiring appears to clear the way for a rate hike. The number of workers unemployed for 27 weeks or longer was unchanged at 2.1 million for November, while the number of workers employed part-time for economic reasons increased by 319,000 to 6.1 million. The Fed has a dual mandate: It must act to prevent the economy from overheating, but it must also do what it can to right a job market that, by some measures, has yet to fully recover from the 2008 recession.
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Job creation has been averaging around 200,000 a month this year, a figure Ms. Yellen said was “quite a bit” above the number needed to continue absorbing slack in the labour market.
