November Jobs Report Shows Robust Growth Amid Rising Unemployment

U.S. Job Creation Beats Expectations in November

U.S. job creation saw a robust rebound in November, with nonfarm payrolls increasing by 227,000, surpassing both the prior month’s revised figure of 36,000 and the consensus estimate of 214,000. This growth follows a stagnation in October, which was largely impacted by a significant labor strike and severe weather disruptions in the Southeast. Although job creation improved, the unemployment rate edged up slightly to 4.2%, aligning with expectations.

Sector Performance

November’s employment gains were led by several key sectors. Healthcare added 54,000 jobs, in line with the sector’s average growth over the last year, with substantial gains in ambulatory health care services, particularly home health care. Leisure and hospitality saw notable growth as well, adding 53,000 positions, particularly within food services and drinking establishments, reflecting a stronger recovery in the sector.

Government employment rose by 33,000, maintaining its steady trend, while transportation equipment manufacturing benefited from the return of striking workers, adding 32,000 jobs. Conversely, retail trade experienced a decline of 28,000 jobs, primarily due to losses in general merchandise retailers.

Wages and Workweek Trends

Wages also saw incremental growth, with average hourly earnings rising by 0.4% to $35.61 per hour, marking a 4.0% year-over-year increase. This signals ongoing wage pressures in the labor market. Meanwhile, the average workweek increased slightly by 0.1 hour to 34.3 hours, continuing a gradual upward trend.

Labor Force Participation and Unemployment Insights

Despite the positive job gains, the labor force participation rate remained steady at 62.5%, reflecting a lack of significant movement in labor market engagement. The unemployment rate rose slightly, and long-term unemployment continued to affect 1.7 million individuals. Additionally, 5.5 million people were not in the labor force but indicated they still wanted a job, underlining the ongoing challenges in workforce reentry.

Market Outlook

In the short term, the labor market appears poised for moderate expansion, particularly in the healthcare and hospitality sectors. However, the uptick in unemployment, coupled with persistent challenges in retail, suggests that job growth may face headwinds as we approach the end of the year. The data supports a generally stable but cautious outlook, with wage pressures continuing to exert inflationary influence on the broader economy. Traders may expect a mixed market response, with the employment data contributing to ongoing market volatility.

More Information in our Economic Calendar.