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Nonfarm payrolls grew more than expected in November

Published 2024-12-06, 08:36 a/m
© Reuters.
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Investing.com - The US economy added more jobs than anticipated in November, rebounding after job growth almost stalled during the prior month, impacted by devastating recent hurricanes and ongoing labor actions.

Nonfarm payrolls rose by 227,000 during the month, climbing from the revised higher 36,000 growth seen in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing (NYSE:BA) factories in the West Coast. 

Economists had expected a reading of 202,000.

The overall unemployment rate came in at 4.2%, matching expectations, and beating the prior month's 4.1% rate. Average hourly earnings came in at 0.4%, unchanged from October and above the 0.3% expected.

"Over the month, employment trended up in health care, leisure and hospitality, government, and social assistance. Employment increased in transportation equipment manufacturing, reflecting the return of workers who were on strike. Retail trade lost jobs," according to a report from the US Bureau of Labor Statistics reported today. 

Separate economic data this week showed that the number of Americans filing for first-time unemployment benefits rose by more than anticipated last week, while private payrolls growth slowed in November.

The Federal Reserve kicked off its rate-cutting cycle in September with a jumbo 50-basis-point and followed that up with a 25 bps reduction at the Nov. 6-7 meeting. 

The US central bank is also widely expected to trim interest rates by a further 25 bps later this month.

However, Fed Chair Jerome Powell said earlier this week that the Fed can take a "little more cautious" approach in cutting rates toward neutral as the economy remains in good shape.

"The economy is stronger than we thought it was going to be in September...the labor market is better, and inflation is coming a little higher," Powell said in what was his final public address ahead of the Fed's Dec. 17-18 meeting.   

 

 

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