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U.S. Added 227,000 Jobs, Unemployment Stayed At 4.2% In November

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U.S. Added 227,000 Jobs, Unemployment Stayed At 4.2% In November

Topline

Job growth was slightly healthier than expected in November, according to the monthly employment report released Friday morning, as the labor market exhibits signs of resiliency after a summer scare.

Key Facts

Nonfarm payrolls grew by 227,000 last month, according to the Labor Department, topping consensus economist forecasts of 214,000 jobs added, according to Dow Jones.

That’s an improvement from the 46-month low job growth of 12,000 initially reported in October, a datapoint many economists noted was negatively skewed by extreme weather events.

The unemployment rate was 4.2% in November, the government said, matching projections of 4.2%

The Labor Department upwardly revised September and October payrolls by 32,000 and 24,000, respectively, meaning job growth was 56,000 more than previously reported across those months.

The reaction from financial markets was modestly positive, as futures for the S&P 500 rose 0.1% shortly after the report and yields for the 10-year Treasury dipped three basis points to about 4.15%, the lowest level since October (lower yields indicate a bond market rally).

Surprising Fact

November was the sixth straight month of over 4% unemployment, with the jobless rate sticking above that threshold after spending February 2022 to April 2024 below 4%, when unemployment touched a five-decade low.

Big Number

$35.61. That was the average hourly earnings of all private nonfarm employees in the U.S., a new record high. Average pay is up 4% over the last 12 months, greater than the sub 3% annual inflation rate by the two most commonly cited measures, though inflation has still outpaced wage increases over the last four years in aggregate.

Key Background

After the July jobs report briefly sent a panic through Wall Street as unemployment unexpectedly spiked to 4.3%, triggering one recession indicator, concerns about the health of the labor market have abated in recent months. Secondary reports earlier this week sent mixed signals, as the ADP private employment report revealed weaker job growth than anticipated and weekly jobless claims ticked up to a six-week high, while job openings came in higher than economists projected. Following a mini crash in early August due to job market fears, stocks have roared to record highs, with the benchmark S&P 500 gaining more than 15% from its early August low.

Further Reading

ForbesU.S. Added 12,000 Jobs In October—Final Labor Market Datapoint Before Election Far Worse Than ExpectedBy Derek SaulForbesTrump And Harris Spar Over Jobs At Debate: Here Are The FactsBy Derek Saul

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