Roughly 227,000 jobs were added to the U.S. economy in November, above expectations, while the unemployment rate was flat at 4.2%, according to the U.S. Bureau of Labor Statistics.
Sectors that saw significant increases in job growth included health care, leisure and hospitality, government, and social assistance, while the retail sector lost jobs.
About 7.1 million Americans were unemployed as of the end of the month. A year ago, in November 2023, the unemployment rate was 3.7% and the number of unemployed was 6.3 million.
The number of long-term unemployed (those jobless for 27 weeks or more) was little changed compared with October at 1.7 million.
That’s up from 1.2 million a year earlier.
In November, the long-term unemployed accounted for 23.2% of all unemployed people.
The labor force participation rate, at 62.5%, was flat compared with the previous month and flat compared with a year earlier.
Wages increased slightly, with the average hourly rate for all employees on private non-farm payrolls up by 13 cents, or 0.4%, to $35.61.
Over the past 12 months, average hourly earnings have increased by 4.0%, the BLS says.
In November, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3%, to $30.57.
“Jobs created in November exceeded consensus estimates and represent a significant jump from October’s report, which was undermined by Boeing strikes and Hurricanes Helene and Milton,” says Sam Williamson, senior economist at First American, in a statement. “The uptick in the unemployment rate was due to a 2.3 percent increase in the number of unemployed individuals, combined with a 0.1 percent decrease in the civilian labor force.
“November’s jobs report highlights the labor market’s resiliency amid signs of gradual cooling. Other labor market indicators, such as the October Job Openings and Labor Turnover Survey revealed mixed signals,” Williamson says. “However, the broader trend of declining quits and openings points to a continuation of ‘The Great Stay,’ where employers are being slow to hire, slow to fire, and workers are staying put.
“Despite the jobs bounce back, the uptick in the unemployment rate likely boosts the chances of a quarter-point interest rate cut later this month by the Federal Reserve,” Williamson adds. “Uncertainty about the potential impacts of the incoming administration’s policies have pushed 10-year Treasury yields, and consequently mortgage rates, higher. Overall, mortgage rates will likely remain in the mid-to-upper upper 6 percent range through year-end, and only drift modestly lower in 2025, though unexpected labor market or economic downturns could lower them.”
Photo: Saulo Mohana