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In November, the United States of America saw a positive development in its job market. According to payroll data released by the Department of Labor, the country created 199,000 non-agricultural job openings, exceeding analysts’ expectations. The consensus Refinitiv estimated the creation of 180,000 new positions per month, but the actual figure surpassed that with 199,000 jobs being added. This is a promising sign for the US economy.
However, the unemployment rate did not meet analysts’ expectations. It fell from 3.9% in October to 3.7% in November. Analysts were hoping for stability, but the rate decrease fell short of their predictions. Nevertheless, the decrease in the number of unemployed people is still a positive outcome. In October, the number of unemployed individuals stood at 6,506 million, but in November, it decreased to 6,291 million.
Another encouraging aspect of the November payroll data is the increase in average hourly wages. The average hourly wage for all employees on non-agricultural private payrolls rose by 12 cents, or 0.4%, to reach US$34.10. Moreover, average earnings per hour have grown by 4.0% over the last 12 months. This increase in wages indicates improvements in the overall economic conditions and the purchasing power of workers.
The market had expected the data to reflect the findings of other studies published earlier in the week, such as Jolts and ADP, which pointed to a decline in the US labor market. However, the November payroll data contradicted these findings, demonstrating that the job market is in better shape than anticipated.
One contributing factor to this positive trend is the resolution of labor disputes. On October 31, approximately 25,300 members of the UAW automotive union ended their strikes against the three major manufacturers in the country. The return to work of these employees would have had an impact on the index, as suspended workers are not included in the payroll data. Additionally, the return of 16,000 members of the SAG-AFTRA union also played a role in the overall improvement of the job market.
Despite the job growth in November exceeding expectations, it is important to note that it fell short of the average monthly gain of 240,000 jobs over the past 12 months. While job creation has been positive, it has not reached the levels seen in previous months.
The data also shed light on the sectors that experienced job growth in November. The government and healthcare sectors remained relatively stable, but there was a noticeable increase in the manufacturing industry, which reflects the return of striking workers. Employment in the retail sector also saw a rise, indicating that consumer spending is still strong.
Overall, the November payroll data presents a mostly positive picture of the US job market. While the unemployment rate did not meet expectations, the increase in job openings and wages is a promising sign for the economy. The resolve of labor disputes has also played a role in improving the overall situation. As the year comes to a close, it will be interesting to see if this positive trend continues and spurs further economic growth in the United States.
