Announced this morning, the economy added 227,000 jobs in November, slightly more than expected. The Health Care and Social Assistance industry and Manufacturing industry were relatively strong, while the Retail Trade industry was relatively weak. The Unemployment Rate ticked one tenth higher to 4.2% and the Labor Force Participation Rate at 62.5% is one tenth lower than the previous month. Average Hourly Earnings increased 0.4% in November, slightly above expectations, and grew 4.0% on an annual basis. In addition, Average Weekly Hours were 34.3, which is slightly higher than the revised figure from the previous month.
Overall, a rebound in payrolls in November from the previous period that was impacted by storms and strikes, coupled with an unemployment rate that ticks higher. On an annual basis, wage growth remains near its historical average and weekly hours are slightly higher. The labor market appears intact but is softer than it was earlier in the year.
As long as individuals are working, they tend to spend money which seems evident at many shopping locations so far this holiday season. Future movements in the unemployment rate and how the Federal Reserve digests these data points heading into their upcoming meeting will be key factors for the economy and markets in the weeks ahead.
Following the release of the jobs report, the yield on the U.S. 10-year treasury ticks lower and equity futures are higher as we head into the market open.
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