United States: Job gains exceed expectations again in November
Total non-farm payrolls increased by 263,000 in November, down from 284,000 in October but beating market expectations of 200,000. Employment gains were particularly strong in leisure and hospitality, health care, and government. Meanwhile, the unemployment rate was stable at 3.7% in November, while wages rose 0.6% month on month.
All in all, the data shows the labor market remained in good shape midway through Q4, although employment growth continues to trend downwards. Looking ahead, the Consensus is for the labor market to lose steam heading into 2023 as the economy slackens amid higher interest rates, with the unemployment rate forecast to move back above 4% next year.
On the reading, TD Economics Thomas Feltmate said:
“Non-farm employment continues to show some signs of slowing, having now fallen short of its three-month moving average in each of the last four months. Moreover, the pullback in hiring across select service industries alongside the continued weakness in the household measure of employment suggests labor demand is starting to cool – albeit from elevated levels.”