US added 227,000 jobs in November | Arkansas Democrat Gazette
WASHINGTON — America’s job market experienced a notable rebound in November, adding 227,000 jobs as part of a robust recovery following a challenging October affected by strikes and hurricanes. This hiring surge stands in stark contrast to the previous month’s meager gain of just 36,000 positions. Additionally, the government has revised its estimates for job growth in September and October, showing an increase of 56,000.
According to the latest report from the Labor Department, the unemployment rate rose slightly from 4.1% in October to 4.2%, which remains a relatively low figure. Hourly wages increased by 0.4% from October to November, and they are up by 4% compared to the previous year, both figures slightly surpassing expectations.
“This was a recovery month,” stated an economist at Navy Federal Credit Union. “When you mix everything together, you still have a moderately expanding jobs market… The labor market is stable.”
The employment report for November reinforces the resilience of the U.S. job market, suggesting that despite a slowdown following the 2021-2023 hiring boom, there is still a foundation of strength. This slowdown is influenced by the high interest rates set by the Federal Reserve to control inflation.
The Federal Reserve raised interest rates 11 times across 2022 and 2023, and contrary to predictions, the economy continued to grow despite these elevated borrowing costs. However, the labor market has shown signs of a gradual slowdown this year.
Experts believe that the recovery from the prior month’s disruptions contributed roughly 60,000 jobs to November’s total, indicating a job market capable of accommodating most jobseekers without igniting inflation concerns. The reported growth of 227,000 jobs is derived from a Labor Department survey of employers, while a separate household survey showed an increase in unemployment of 161,000. Additionally, the number of people either employed or actively seeking work fell for the second consecutive month.
It is important to note that the job gains in November were concentrated among just a few sectors: healthcare and social assistance, leisure and hospitality, and government collectively made up 70% of the total jobs created. The manufacturing sector saw an increase of 22,000 positions, thanks in part to the resolution of strikes at Boeing and other companies.
Meanwhile, the retail sector faced challenges, shedding 28,000 jobs as seasonal hiring for the holiday period proved lower than usual.
“I don’t think we should be misled by the solid number of 227,000,” remarked the chief economist at an employment firm. Analyzing the data reveals that the average increase in jobs for October and November is only 132,000 a month.
“This report offers very little evidence of a labor market rebound,” she added.
Another economist from Wells Fargo expressed a similar sentiment, indicating that while the job growth is decent, it does not signal an end to the current downturn in hiring trends.
Despite these fluctuations, many Americans enjoy significant job security. Recent government data revealed that job cuts decreased to 1.6 million in October, a low not seen in the two decades preceding the pandemic. Meanwhile, job openings are starting to recover from a three-and-a-half-year low, suggesting that companies are still actively seeking to hire, even with a cooling job market.
The overall economy exhibits resilience as well. Predictions that higher borrowing costs would push the economy into a recession have not materialized, as growth has continued thanks to consumer spending and hiring by employers. The economy expanded at an annual rate of 2.8% from July to September, buoyed by consumer spending, and has seen annual growth exceed 2% in eight of the last nine quarters. Inflation has also fallen from a high of 9.1% in June 2022 to 2.6% recently.
However, for those who are losing jobs, the search for new employment has become more challenging—last month, the average unemployed person was out of work for 23.7 weeks, marking the longest duration in two and a half years.
The combination of easing inflation and a slowdown in hiring has led the Federal Reserve to cut its key interest rate twice since September, with expectations for another cut in an upcoming meeting.
Federal Reserve Chair Jerome H. Powell noted that the economy is performing strongly, though inflation still surpasses the Fed’s 2% target. He acknowledged that growth is stronger than anticipated, leading to a cautious approach in continuing interest rate reductions.
Looking forward, there may be positive developments in the job market. Wages have outpaced inflation for the last two years, enhancing Americans’ purchasing power. Lower borrowing rates could stimulate future spending and job creation.
Nevertheless, some businesses are taking a reserved approach to hiring. For instance, the CEO of a major artificial holiday tree manufacturing company noted that he is carefully monitoring hiring trends amid subdued consumer spending and significant price discounts. The company is also strategizing to mitigate the impact of potential new tariffs on imports as they shift manufacturing operations out of China.
