Special Poll
The U.S. economy added 227,000 jobs in November, while the unemployment rate rose slightly to 4.2%, according to the Labor Department’s report on Friday. This data highlights a strong recovery following challenges earlier in the year.
The increase in jobs reflects a bounce-back from disruptions caused by hurricanes and a major strike in October, which had temporarily sidelined many workers. For example, transportation equipment manufacturing added 32,000 jobs in November as workers returned after a strike at Boeing.
October’s job growth was also stronger than initially reported, with 36,000 jobs added—24,000 more than first estimated. September’s numbers were revised upward as well, from 223,000 to 255,000, giving a clearer picture of a labor market that continues to perform well despite earlier setbacks.
The November report, along with other indicators like low levels of unemployment claims, shows that the job market remains steady. Federal Reserve officials, who had been concerned about rising unemployment earlier this year, now seem less worried about its strength. The Fed’s decision to cut interest rates in September to support employment appears to have contributed to the stability.
While Fed officials are encouraged by the resilience of the labor market, inflation remains a concern. Fed Governor Christopher Waller noted this week, “While I’m pleased with how well the labor market has held up, I’m less pleased with what the data is telling us about inflation.”
The latest jobs report is unlikely to have a significant impact on the Federal Reserve’s upcoming decision at its December 17-18 meeting. Financial markets already expect another rate cut, with the likelihood rising to 89% after the release of the jobs data, compared to 69% beforehand, according to the CME’s FedWatch tool.
Overall, the report paints a positive picture of the labor market, but the Federal Reserve will continue to weigh the balance between supporting employment and addressing inflationary pressures.