Labor said job gains have averaged 210,000 per month in 2015, up from 206,000 at the end of October. The civilian labor force participation rate was 62.5 percent, and it also changed little in November.
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Average hourly pay rose, though modestly, and the government revised up its estimate of job growth for September and October. Futures indicated a 100 point gain in the Dow Jones industrial average when the market opens at 9:30 a.m. ET. It is imperative to state that employers have now added an average of 213,000 a month over the last six months.
The US is on course for its first interest rate increase in nine years later this month following a strong employment report. Market-based measures of Fed policy expectations assign a probability of 79.1 per cent to the central bank’s raising interest rates at that meeting, according to the CME Group’s FedWatch site.
The moderate growth pace “will be sufficient to generate additional increases in employment, further reductions in the remaining margins of labor market slack, and a rise in inflation to our 2 per cent objective”, she said.
UniCredit’s chief economist Harm Bandholz believes that the latest unemployment data should dispel any doubts about the incoming rate hike later this month.
November saw broad employment gains, but the mining sector lost 11,000 jobs, and the manufacturing sector cut 1,000 positions. He is confident that the labor department’s recent figures are a clear indication that the labor market wants the rate hike as much as Wall Street does. The robust hiring indicates that consumer spending is powering the economy even as weak growth overseas and low oil prices squeeze USA manufacturers and drillers.
Fed Chair Janet Yellen on Thursday, referencing the October labor report, said there are “welcome hints” that wages are starting to rise. That would lower the year-on-year reading to 2.3 percent from 2.5 percent.
Two Fed Reserve bank presidents voiced their support for a rate increase in the near term during Friday speeches.
The unemployment rate remained at a low 5 percent in November for a second straight month, the government said Friday.
The U.S. shed some 7 million jobs in the year after the financial crisis.
The strong report alleviates some concerns that the us economy was cooling just when the the Fed was about to hike rates.
“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.
The trade deficit rose in October as exports hit a three-year low. Construction companies added 46,000 jobs, the most in two years. These workers were not counted among the unemployed if they had failed to look for a job in the month prior to the report’s release.
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Harker explained his view that, with an early start, the Fed can better ensure that monetary accommodation is removed gradually and that inflation returns to the central bank’s 2 percent target smoothly.
