The U.S. economy added 227,000 jobs in November, surpassing economists’ forecast of 215,000, the Department of Labor reported Friday. The unemployment rate edged up slightly to 4.2%, as more individuals entered the workforce.
Revised figures from earlier months also painted a stronger picture of labor market resilience. October’s job growth was adjusted upward from 12,000 to 36,000, while September’s figures were revised from 223,000 to 255,000. Private sector payrolls increased by 194,000 in November, close to predictions of 200,000.
- Leisure and Hospitality: Employment rose by 53,000, reflecting above-average gains for the year.
- Health Care: Added 54,000 jobs, continuing steady growth in the sector.
- Government: Gained 33,000 jobs, with state and local governments accounting for 20,000 of the increase.
- Manufacturing: Employment grew by 22,000, recovering from a 48,000 loss in October.
- Retail Trade: Lost 28,000 jobs, signaling weaker-than-usual seasonal hiring.
- Transportation and Warehousing: Added 3,400 jobs, a modest increase amid high demand for logistics services.
Average hourly earnings rose by 0.4%, outpacing the expected 0.3% increase and matching October’s gain. Over the past year, wages have grown by 4%, reflecting ongoing competition for workers. The average workweek also ticked up to 34.3 hours from 34.2 hours in October.
Despite signs of economic resilience, some underlying metrics signal potential caution. The quit rate rose in October, reflecting worker confidence, while job openings increased. However, the hiring rate remains below pre-pandemic levels, leaving economists divided on whether this indicates employer hesitancy or a worker shortage.
The Federal Reserve’s recent rate cuts, aimed at countering a potential slowdown, appear to have supported continued job growth. November’s report underscores the labor market’s strength but leaves questions about longer-term trends as businesses navigate economic uncertainties.
