US Job Growth Surpasses Expectations in November

Investing.com – The US economy added more jobs than anticipated in November, rebounding after job growth almost stalled during the prior month, affected by recent hurricanes and ongoing labor actions.

Nonfarm payrolls rose by 227,000 during the month, up from the revised 36,000 growth seen in October, which was impacted by Hurricanes Helene and Milton and a significant strike at Boeing (NYSE:BA) factories on the West Coast.

Economists had expected a figure of 202,000.

The overall unemployment rate was 4.2%, matching expectations and rising from the previous month’s 4.1% rate. Average hourly earnings increased by 0.4%, unchanged from October and above the expected 0.3%.

"Over the month, employment trended up in health care, leisure and hospitality, government, and social assistance. Employment increased in transportation equipment manufacturing, reflecting the return of workers from strike. Retail trade lost jobs," according to a report from the US Bureau of Labor Statistics released today.

Separate economic data this week indicated that the number of Americans filing for first-time unemployment benefits rose more than anticipated last week, while private payroll growth slowed in November.

The Federal Reserve began its rate-cutting cycle in September with a 50-basis-point cut, followed by a 25 bps reduction during the Nov. 6-7 meeting. The Fed is expected to cut rates by an additional 25 bps later this month.

However, Fed Chair Jerome Powell stated earlier this week that the Fed can take a "little more cautious" approach towards cutting rates as the economy remains solid.

"The economy is stronger than we thought it would be in September…the labor market is better, and inflation is coming a little higher," Powell noted in his final public address before the Fed's Dec. 17-18 meeting.