US employers hired fewer people than forecast in November and the unemployment rate held at a 49-year low, according to the j0bs report from the Bureau of Labor Statistics released Friday.
Nonfarm payrolls increased by 155,000, extending the record streak of net job additions in the US to its 98th month. Economists had forecast that employers added 198,000 nonfarm payrolls, down from the blockbuster 250,000 print that was initially reported for October, according to estimates compiled by Bloomberg.
They had forecast that the unemployment rate held for a third straight month.
With the rate this low, several other economic indicators have shown that wages are finally rising as employers struggle to fill vacant positions. The sluggish pace of wage growth has dogged this economic recovery and remained one of the bleakest trends of an otherwise strengthening jobs market.
Average hourly earnings were expected to increase 0.3% month-on-month and 3.1% year-on-year, matching the highest rate since April 2009.
The jobs report, a high-level diagnosis on the health of the US economy, could shed more light on the impact of trade policy on hiring and wages in industries like manufacturing. In the Federal Reserve’s most recent beige book of anecdotes from across the US, several business owners said tariffs were raising their input costs — a trend that may slow their pace of hiring in a jobs market that’s already tight.
This jobs report also comes at a tumultuous time for stocks, as Wall Street investors try to unravel whether the weakness in financial markets is signaling something more sinister about the underlying economy.
Source: Business insider