Amid fears of massive tariffs and inflation, November proved to be a strong month for job creation in the United States. The economy added 227,000 positions, a sharp rebound from October’s revised total of 36,000.
The uptick highlights the economy’s ability to bounce back after disruptions caused by worker strikes and October weather disruptions. The unemployment rate edged up slightly to 4.2% from 4.1%, according to data from the Bureau of Labor Statistics.
The biggest job gains came from private education and health services, which added 79,000 positions. Healthcare roles in ambulatory services, home health, and nursing accounted for 54,000 of those jobs. Leisure and hospitality followed with 53,000 new jobs, primarily in restaurants, marking its largest monthly increase since March.
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Government hiring contributed 33,000 positions, while other sectors also performed well, with manufacturing showing strong job growth in November. On the other hand, retail trade saw the steepest decline, shedding 28,000 jobs, according to CNN.
“The economy is doing just fine, and the hopes for multiple Fed rate cuts next year are literally dying on the vine. The economy’s strength is just another sign that the Federal Reserve’s interest rates are not at restrictive levels that slow growth,” Chris Rupkey, chief economist at FwdBonds wrote on Friday. Rupkey emphasised that Washington doesn’t need to interfere with economic measures as job opportunities are abundant. However, he pointed out that inflation remains a concern.
Stock market futures saw a slight uptick following the release of the latest job report, while Treasury yields declined. the interest rates the U.S. government pays to borrow money from investors, as well as the returns investors earn from holding U.S. Treasury bonds.)
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The November report has initiated discussions about the current state of the labor market and its potential impact on the Federal Reserve’s upcoming interest rate decisions. Traders are increasingly betting on a rate cut, with the odds now over 88% for a quarter-point cut when the Fed meets on December 18, according to NBC.
Lindsay Rosner, head of multi-service investing at Goldman Sachs Asset Management, described the report as a “Thanksgiving buffet,” with “payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling.” On Friday, the Dow opened 86 points, or 0.2%, higher, while the S&P 500 rose by 0.2%, and the Nasdaq Composite climbed 0.3%.
