U.S. Payroll Gain of 266,000 Trounces Forecasts as Wages Heat Up
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Unemployment rate falls to 3.5%, matching half-century low
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Automaker payrolls rebound by 41,300 after GM strike ends
U.S. job gains roared back in November as unemployment matched a half-century low and wages topped estimates, giving the Federal Reserve more reason to hold interest rates steady after three straight cuts.
Payrolls jumped 266,000, the most since January, after an upwardly revised 156,000 advance the prior month, according to a Labor Department release Friday that topped all estimates in a Bloomberg survey calling for 180,000 jobs. It was the first full month that General Motors Co. workers returned to work after a 40-day strike, adding 41,300 to automaker payrolls following a similar drop the prior month.
Stocks in the U.S. climbed on the report and headed for their best gain in a month, while Treasuries fell and the dollar rose.
The jobless rate dipped to 3.5%, matching the lowest since 1969. Average hourly earnings climbed 3.1% from a year earlier, exceeding projections, and the prior month was revised higher. Private employment jumped by 254,000.
The data back the Fed’s view that the labor market remains strong, supporting consumers and continued economic growth. That may give the central bank more room to keep interest rates on hold at their meeting next week amid the uncertainty of President Donald Trump’s prolonged trade talks with China. Wage gains should also support holiday shopping and ease concerns about a slowdown.
“It’s a significant surprise because economists were ready to go with the idea that payroll growth was slowing down because the job market had gotten tight,” said Stephen Stanley, chief economist at Amherst Pierpont. “The whole tenor has changed in terms of job growth. We’re back at steady-as-she-goes at a robust pace.”
The MSM and Democrats!
I'm impressed you found this on Bloomberg. Mike's gonna be pissed.
Obama did that !
It was better than predicted yet honestly I see no dip either way.
It is basically a continuation of what we have had for a while.
NPR was just reporting unemployment is at a fifty year low. and your chart shows it at a low point. They also reported that wage growth had more concentrated growth for low end wages and was a reversal of current trends where the high earners were making most of the gains. They also said there was a reduction in inflation so the wage growth is now outpacing inflation which translates into more purchasing power.
Here is a link it is the third story down.
The wage discrepancy is no where near where it should be. Most of the employment was in the service sector which are not high paying jobs.
Labor force participation actually dropped which contributed to the actual employment numbers drop.
I also think it is kind of funny that government workers have grown.
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Obama 156,000 in a month !
Super duper fantastic !
Trump , Supprise, surprise, surprise...266,000 in a month !
Just Crumbs !