Job creation in November rebounded from near-stasis the previous month as the effects of a major labor strike and violent storms in the Southeast eased, the Bureau of Labor Statistics reported Friday.
Nonfarm payrolls rose by 227,000 during the month, compared with an upwardly revised 36,000 in October and the Dow Jones consensus estimate of 214,000.
However, the unemployment rate rose to 4.2%, as expected. The unemployment rate rose as the labor force participation rate declined and the labor force itself declined. The broader measure that includes discouraged workers and those holding part-time jobs for economic reasons rose to 7.8%.
Job gains were concentrated in healthcare (54,000), entertainment and hospitality (53,000), and government (33,000), sectors that have consistently led salary growth over the past few years.
Meanwhile, retail trade saw a decline of 28,000 heading into the holiday season. With Thanksgiving falling later than usual this year, some stores may have paused hiring.
Worker wages continued to rise, with average hourly earnings up 0.4% from last month and 4% on a 12-month basis. Both numbers were 0.1 percentage point higher than expectations.
Stock market futures rose after the report while Treasury yields fell.
The report comes with questions about the state of the labor market and how that will impact the Federal Reserve's interest rate decisions.
As central bank policymakers prepare to make their next decision on December 18, markets are watching closely as the Fed looks to balance its dual concerns of price stability and full employment.
Earlier this week, Federal Reserve Chairman Jerome Powell said the overall strong economic state gives him and his colleagues the ability to be patient when making interest rate decisions. Other officials said they saw additional interest rate cuts as possible but were subject to changes in economic data.
While inflation is still far from a 40-year high in mid-2022, recent months have shown prices rising. Meanwhile, the October jobs report and several other reports indicated that the labor market is still growing but slowing.
Markets expect the Fed to approve another quarter-point cut this month, then skip January as it monitors incoming economic information.
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