Hiring in the US slowed in November, resuming a sluggish trend that has persisted throughout much of the year.
The US economy added 64,000 jobs in November, down from 119,000 in September, but still exceeding economists’ expectations.
The big picture: The unemployment rate rose to 4.6% in November from 4.4% in September, reaching its highest level in several years but remaining low by historical standards.
- The healthcare sector led November’s job gains, adding 46,000 positions; construction and social assistance also saw increases.
- The federal government lost 168,000 jobs over October and November, mainly due to employees accepting a deferred resignation offer earlier this year.
- Employment in transportation and warehousing fell by 18,000 jobs in November, contributing to a total sector loss of 78,000 jobs since February.
Driving the news: The Bureau of Labor Statistics noted that October’s household survey data wasn’t collected, so the report relied solely on business-side data.
- The report’s release was delayed and issued mid-month instead of the usual first Friday due to extended data collection and processing.
State of play: The jobs report was published less than a week after the Federal Reserve’s third interest rate cut of the year, bringing the benchmark rate down to between 3.5% and 3.75%.
- While rates have fallen from their 2023 peak, borrowing costs remain higher than the near-zero rates seen after the pandemic began.
What they’re saying: Fed Chair Jerome Powell said the latest rate cut was intended to improve the labor market but signaled a cautious approach about further reductions.
- Powell highlighted the ongoing challenge for the Fed to balance its dual mandate of low inflation and maximum employment, calling it a “challenging situation” with “no risk-free path.”
