After one lackluster October ratio of jobs due to blow AND stormsThe November Labor Report shows that the market has returned to healthy levels.
of Employment Status Reportreleased Friday by the Bureau of Labor Statistics found that the U.S. economy added 227,000 new jobs in November, higher than 214,000 jobs are expected by economists polled by The Wall Street Journal.
The unemployment rate also rose from 4.1% in October to 4.2% in November. The number of unemployed is now 7.1 million, higher than at the same time last year when there were 6.3 million people out of work.
The healthcare, leisure and hospitality and government sectors added 54,000, 53,000 and 33,000 new jobs last month, respectively, while the retail sector shed 28,000 jobs.
EY senior economist Lydia Boussour said after the report was released entrepreneur in an emailed statement that the November employment report “showed a broad but temporary rebound in payroll gains of 227,000 as disruptions from strikes and hurricanes faded.”
“However, weaker household survey data confirmed that labor market conditions are undeniably cooling with the unemployment rate rising to 4.25%,” she added.
November's employment report beat expectations by adding jobs, unlike October's report, which underperformed. In October, the economy added just 12,000 new jobs, the smallest gain since then December 2020 and down 100,000 extra is expected.
Related: The US economy was expected to add 100,000 jobs in October – it added 12,000. Here's why.
Looking ahead, Boussour expects the Federal Open Market Committee (FOMC) to cut the federal funds rate by 25 basis points, or 0.25%, at its next policy meeting on December 17-18. The federal funds rate is the rate that banks pay each other for loans. It also predicts that the unemployment rate will reach 4.5% by mid-2025.
“Going forward, policymakers at the Fed will tread carefully,” Boussour said.