Job Gains Bounce Back in November

Investing.com reports that job gains surged in November, recovering from an October slump. However, deeper analysis reveals underlying weaknesses in the labor market, prompting expectations for a Federal Reserve interest rate cut.

Key Highlights

• Nonfarm payrolls grew by 227,000 in November, a rebound aided by 38,000 jobs from the end of strikes, notably at Boeing.
• The household survey showed a decline of 355,000 in employment for the month, indicating a gradual loss of momentum in the labor market.
• While the household survey is volatile, other indicators highlight a softening labor market, with over 23% of unemployed workers out of a job for more than six months.
• The unemployment rate has increased by 0.1%, and the labor force participation rate has also decreased, suggesting a weaker labor market.
• Economists expect the Fed to cut rates at their December 17–18 meeting, pending no major surprises in upcoming economic data.

In summary, the November job gains mask underlying weakness in the labor market, reinforcing predictions for Federal Reserve rate cuts later this month.