The U.S. Economy Added 227,000 Jobs

The Gist

The November 2024 Jobs Report showed that the U.S. economy added 227,000 nonfarm payroll jobs, surpassing market expectations of 200,000 (Trading Economics). The unemployment rate ticked up slightly to 4.2% from 4.1% in October and 3.7% a year ago, reflecting a stable but slightly softening labor market. Wage growth remained consistent, with average hourly earnings rising 0.4% MoM and 4.0% YoY.

The Color

Healthcare added 54,000 jobs, leisure and hospitality gained 53,000 jobs, government hiring rose by 33,000, and transportation equipment manufacturing added 32,000 jobs. The recovery in transportation equipment manufacturing can be attributed to the end of the Boeing machinist union strike. Lastly, retail trade lost 28,000 jobs. The 4.2% unemployment rate and the 62.5% labor participation rate suggest the labor market remains strong. Furthermore, the September and October jobs reports were revised to 255,000 (+32,000) and 36,000 (+24,000).

The Takeaways

The November jobs report and the September and October revisions continue to suggest a strong labor market. It remains important to note that the hurricanes earlier this year will continue to affect the November data as they did the October data. The November report itself does little to change the FOMC members' views. Going forward, CPI and Retail Sales will be the two main data points to monitor to determine whether the Fed will maintain or lower its policy rate.

You can read the full report here.