Yellen also said the economy needs a net gain of about 100,000 jobs to accommodate new entrants to the economy, and the new jobs have been created at a faster rate than that for some time.
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USA job growth remained solid in November, increasing the chances that the Federal Reserve will raise interest rates from record lows later this month.
Total non-farm payroll employment increased by 211,000 in November, and the unemployment rate was unchanged at 5%, the Labor Department said Friday. September and October data was revised to show 35,000 more jobs than previously reported. The labor-force participation rate edged up to 62.5 per cent last month, from 62.4 per cent in October. Claims are near levels last seen in 1973 and there is little room for further declines as the labor market normalizes.
Now it seems nearly certain that the Fed will raise rates-most likely by a quarter of a percentage point-when the Federal Open Market Committee meets as scheduled on December 15 and 16.
Now, all eyes will be on the Federal Reserve to see if interest rates do increase. The dollar rose against a basket of currencies and US stocks were trading higher.
“Retail trade employment continued on an upward trend in November (+31,000) and has risen by 284,000 over the year”.
Outside of recessions, GDP growth typically outstrips job growth by far more. There’s nothing in wage or inflation data to suggest that the economy is overheating, and there are signs that there is still plenty of slack in the labor market.
Wages grew by 0.2 percent, the November BLS report said, making the 12-month change a disappointing 2.3 percent.
“Average hourly earnings slipped a bit but matched expectations”, Becketti said. A rise in employment was offset by an increase in the labor force, which includes Americans looking for jobs or working.
Manufacturing has been crippled by dollar strength, efforts by businesses to reduce bloated inventory and investment cuts by energy companies scaling back well drilling and exploration in response to the sharply lower oil prices.
The mining sector, which has been pummeled by low oil prices, fell by 11,000 last month, and has fallen by 123,000 over the past year.
Oilfield services provider Schlumberger this week announced another round of job cuts in addition to 20,000 layoffs already reported this year.
The biggest increase in hiring last month occurred among construction firms, restaurants and retailers.
For-hire trucking gained 2,300 jobs; however, the October figure was revised to reflect a loss of 900 jobs, instead of the 400-job gain when the employment data was released November 6.
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“The better-than-expected November jobs report seals the deal”, Gus Faucher, a senior vice president and macroeconomist at The PNC Financial Services Group, wrote in a research note Friday.
