According to the latest payroll data released by the Department of Labor, the United States created a total of 199,000 non-agricultural job openings in November. This number is significantly higher than what analysts had anticipated. Prior to the release of the data, analysts had projected an estimate of 180,000 new positions being created each month. However, Projetos Broadcast reported that based on estimates from 26 analysts, a total of 198,000 jobs were actually added to the US job market last month. The higher-than-expected job growth comes as a positive surprise for economists and indicates a strong labor market in the country.
In addition to the robust job growth, the unemployment rate in the United States also declined in November. It fell from 3.9% in October to 3.7% in November. However, the decline fell short of analysts’ expectations who were hoping for stability in the unemployment rate. Despite the decrease, which indicates an improved employment situation, there were fewer unemployed individuals in November compared to October. The number declined from 6.506 million in October to 6.291 million in November.
Another positive development in the US job market is the increase in average hourly wages. In November, the average hourly wage for all employees on non-agricultural private payrolls rose by 12 cents, or 0.4%, to reach $34.10. This increase reflects a 4.0% rise in average earnings per hour over the past 12 months. The growth in wages is an encouraging sign as it indicates improved compensation for workers and can result in increased consumer spending power.
The release of the payroll data for November contradicts expectations based on other studies, such as Jolts and ADP, which suggested a decline in the US labor market. Furthermore, the end of strikes by members of the UAW automotive union, involving 25,300 workers, and the return to work of 16,000 members of the SAG-AFTRA union, who were previously on strike, were expected to have an impact on the employment index. However, these factors did not significantly affect the overall job growth numbers.
Although the job growth in November exceeded expectations, it still fell short of the average monthly gain of 240,000 jobs observed over the previous 12 months. Despite this, November witnessed growth in various sectors. Both the government and healthcare sectors saw similar employment levels compared to the previous month. However, the manufacturing industry experienced an increase, largely due to the return of striking workers. There was also an increase in employment within the retail sector.
Overall, the payroll data for November highlights the resilience of the US job market. The higher-than-expected job growth, coupled with a decline in the unemployment rate and an increase in average wages, indicates a healthy labor market and economic stability. These factors bode well for the continued growth and prosperity of the US economy.