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U.S. Job Market Witness Huge Growth in November

U.S. Job Market Witness Huge Growth in November

November’s U.S. job market signaled a rebound as thousands of automobile workers and actors returned after strikes. Despite this surge, the underlying trend suggests a gradual cooling in the labor market.

In October, the US Bureau of Labor Statistics reported a 150,000 increase in total nonfarm payroll employment, with the unemployment rate remaining largely unchanged at 3.9 percent. Key highlights from the report include:

Key Highlights:

  • Strong rebound in US job growth after strikes in November
  • Expected steady wages and unchanged unemployment rate
  • Federal Reserve likely to conclude interest rate hikes for this cycle
  • Economists emphasize signs of a cooling jobs market
  • Expanding labor pool slows wage growth, aiding inflation control

Household Survey Data

  • Unemployment rates among various groups remained relatively stable, with minor shifts in specific demographics.
  • Permanent job losses rose by 164,000 to reach 1.6 million, while the number of long-term unemployed individuals held steady at 1.3 million.
  • Labor force participation and employment-population ratios remained consistent, showing no significant changes.
  • The count of individuals working part-time due to reduced hours or lack of full-time job availability saw minimal alterations.

Read More: Unemployment Insurance Weekly Claims Increased Up To 220,000

Establishment U.S. Job Market Survey Data

  • Job gains were observed in health care, government, and social assistance sectors, although manufacturing suffered a decline due to strike activity.
  • Health care added 58,000 jobs, in line with previous monthly gains, with increases in various health care service segments.
  • Government employment grew by 51,000 and has reached pre-pandemic levels, particularly in local government roles.
  • Social assistance added 19,000 jobs, slightly below the average monthly increase, predominantly in individual and family services.
  • Construction, professional and business services, leisure and hospitality, transportation, warehousing, and information sectors exhibited marginal fluctuations, with limited net changes.
  • Average hourly earnings for employees increased slightly by 0.2 percent to $34.00, marking a 4.1 percent rise over the past year.
  • The average workweek for private nonfarm employees decreased marginally to 34.3 hours.

Additionally, revisions in employment data for August and September resulted in a combined decrease of 101,000 jobs compared to previously reported figures. These revisions stem from updated reports received from businesses and government entities.

Read More: China Forex Reserves Surged in November A Exports Rose Marginally

U.S. Job Market Implications for Federal Reserve and Policy

The anticipated report by the Labor Department is expected to reveal moderate wage increases and a steady unemployment rate. This will reinforce the belief that the Federal Reserve is concluding its interest rate hikes for this cycle. However, it may contradict financial market expectations of a rate cut in early 2024.

Economists, such as James Knightley from ING in New York, emphasize the need for evidence that monetary policy and credit conditions are curbing inflationary pressures. While the Fed may not signal a desire for significant cuts, they acknowledge signs of a cooling jobs market.

Impact of Expanding Labor Pool on Wage Growth

The expanding labor pool seems to slow down wage growth, aligning with the Fed’s efforts to rein in inflation. Average hourly earnings are expected to climb modestly, contributing to a slight decrease in annual wage increases. Despite potential implications for consumer spending, economists do not foresee a recession but anticipate a period of subdued growth.

The US job market in November reflects a mix of recovery from strikes and a gradual slowdown in employment gains. The Labor Department’s report, forecasting steady wages and a stable unemployment rate, may influence the Federal Reserve’s policy direction. Economists emphasize the significance of these insights in understanding the evolving labor market dynamics.


November’s U.S. Job Market showcased resilience post-strikes, indicating a steady rise in employment. Anticipated wage stability and a consistent unemployment rate align with the Federal Reserve’s probable conclusion of interest rate hikes. Economists’ observations of a cooling jobs market and the impact of an expanding labor pool on wage growth offer insights into ongoing efforts to manage inflationary pressures.


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