Unemployment Slightly Higher at 4.2%
Jobs Growth
Jobs growth returned in November, reaching 227,000 new positions. That gain followed a restatement of October activity, increasing from the 12,000 new jobs initially reported to 36,000. Another 20,000 jobs were also added to the September count, raising it to 255,000. With these adjustments, the 12-month average netted out at 186,000 jobs.
Top Industries
Following recent trends, the strongest sectors for growth were healthcare, government and social assistance. Jobs were gained in leisure and hospitality but lost in retail trade. Following the conclusion of a strike, employment was up in transportation equipment manufacturing.
Unemployment
The unemployment rate drifted upward slightly in November from 4.1% to 4.2%.
Wages
As was the case in the two prior months, average hourly earnings gained 0.4%, maintaining the rate of gains over the past 12 months at 4.0%.
Work Week
The average work week was clocked at 34.3 hours.
Temporary Job Trends
In November, the temporary jobs sector gained 1,600 jobs. The previous month’s numbers were also adjusted downward to reflect a smaller loss of jobs in October.
What Does It All Mean?
A month ago, job creation was at a standstill. That is no longer the case, with the November jobs report reflecting a return to a more “normal” pace of activity. The October report is now viewed by most as a clear outlier, reflecting temporary contraction due to hurricanes and strikes. This has tempered worries that the economy might be approaching a dangerously steep dropoff.
Moving past the anomalies of October, the labor market remains fairly strong, continuing its forward momentum, albeit at a sometimes slower pace than was often seen post-pandemic. Unemployment is still relatively low, although higher than it has been. Fears of mass layoffs that surfaced earlier in the year are largely unfounded. More people are staying put for the time being, perhaps opting for the
promise of stability over the possibility of a salary surge. Those who are pursuing new opportunities are taking longer to land a new job.
Employers always look for ways to simplify, streamline and speed up the hiring process. That promotes greater efficiency, and hopefully, greater satisfaction in the process. However, sometimes opting for a slower job search/job fill dance can lead to fewer missteps in the future for both candidate and employer.
Sources: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, CBS, FOX Business, CNN, CNBC, MarketWatch, USA Today
