WASHINGTON - The nation’s employers added 199,000 jobs in November and that the unemployment rate fell .2% to 3.7% - a sign that the economy may achieve that “soft landing,” in which inflation would return to the Federal Reserve’s 2% target without a steep recession.
Friday’s report from the U.S. Labor Department showed that the unemployment rate has remained under 4% for 22 months, the longest since the late 1960s.
November’s job gain was a reminder that many employers continue to hire, but likely was inflated by the return of about 40,000 formerly striking auto workers and actors returned to work in November.
The jobs report portrays an economy at a still-steady pace coming back to pre-pandemic numbers.
Employers are having an easier time hiring, with less pressure to rapidly raise pay, which can fuel inflation.
Wages are growing at a slower but healthy pace. In November, average hourly pay rose 4% from last year, which should support consumer spending. Early reports on holiday shopping showed healthy growth in online sales.
Hiring has remained concentrated in the health care industry; hotels and restaurants; and governments 49,000. In contrast, retailers, shipping and warehousing and 'temp' agencies all cut jobs.
The Fed has raised short-term interest rates from near zero to about 5.4% that has led to higher borrowing rates for consumers/businesses and lower inflation. Despite the upticks, the economy and job market are still expanding.
When the Fed meets next week, it is generally believed it will leave its current benchmark rate unchanged for a third straight time.
Most economists think the Fed’s next move will be to cut rates, though that might not happen until the second half of 2024. (The AP 12/08/23) US jobs report: Employers add 199K jobs, unemployment falls | AP News
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