The U.S. economy added 227,000 nonfarm payrolls in November, beating expectations of 214,000 and rebounding from 36,000 jobs in October, which was hit by the hurricanes. The Bureau of Labor Statistics (BLS) announced Friday that the unemployment rate rose to 4.2%, higher than expected.

Number of non-farm employees

The BLS releases monthly data as part of its Employment Situation Report. Nonfarm payrolls is an important indicator, measuring the total number of paid workers excluding agricultural workers (seasonal patterns can distort broader economic trends).

Employment additions this month totaled 227,000, a significant rebound from October’s 36,000, but still below September’s 255,000.

By field:

  • Healthcare: +54,000 jobs
  • Leisure and hospitality: +53,000 jobs
  • Government: +33,000 jobs
  • Social assistance: +19,000 jobs

However, the retail sector lost 28,000 jobs ahead of the year-end sales season.

The average hourly wage increased by 0.4% from the previous month and by 4% from the same month last year, slightly higher than expected.

However, despite the increase in employment, the unemployment rate rose to 4.2%. In other words, the number of job seekers has grown faster than the number of jobs created.

what it means

November’s increase reflects the easing of disruptions in October from Hurricane Milton (which made landfall in Florida on October 10) and the Boeing strike (September 13 to November 4). Employment in transportation equipment manufacturing has rebounded as striking Boeing employees have returned to work.

Market analysts are viewing the data as a green light for the US Federal Reserve to cut rates further at its December 18 meeting. Following the report, the market’s odds of a 25 basis point cut were over 88%. The Fed has already cut interest rates by 50 basis points in September and 25 basis points in November.

“While the economy continues to generate healthy job and income growth, further increases in the unemployment rate could dampen some of the labor market’s shine and hurt the Fed,” said Ellen Zentner, chief economic strategist at Morgan Stanley. “We are giving the same amount of money,” he said. Interest rates need to be cut in December. ”

reaction

Stock futures rose, reflecting investor optimism.

Government bond yields have fallen, consistent with the increased likelihood of rate cuts.

The dollar fell slightly as the market priced in further easing.