US Hiring Slowed to 155K Jobs, Jobless Rate Unchanged

U.S. Department of Labor's November labor report

U.S. Department of Labor's November labor report

For November, moreover, the unemployment rate was 3.7% for the third month in a row, while average earnings rose 0.2% to $27.35 an hour. "Based on the reported wage growth this month, estimated household income growth increased 3.1 percent compared with a year ago".

But the United States added an average of 206,000 jobs a month through the first 11 months of 2018, above the 182,000 pace during the same period a year ago.

On a seasonally adjusted basis, for hire trucking gained 4,500 jobs; on a not seasonally adjusted basis, the industry lost 1,200 jobs.

Small businesses (one to 49 employees) grew by 46,000 jobs, and large businesses (500 or more employees) by 13,000, the report said.

The work report comes as delicate October information on the lodging market, business spending on hardware and a hop in the exchange shortfall to a 10-year high have increased feelings of dread the economy is moderating. "This report strongly implies that a recession is not looming just over the horizon". But Friday's report suggests the Fed may not hike rates next year as rapidly as many investors have feared.

Though the unemployment rate remains at a historically low 3.7 percent, there are plenty of potential workers on the sidelines who could contribute to employment growth in the future.

In the wake of the work report, US money related markets kept on evaluating in one rate climb from the Fed in 2019, contrasted and desires for conceivably two rate climbs multi month sooner, as indicated by CME Group's FedWatch program. Unemployment rates dropped sharply for African-Americans, Asian-Americans and workers with only a high school diploma or less.

Still, manufacturers added 27,000 jobs last month.

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Strong holiday shopping helped lift retailer hiring by 18,200 in November, the most in six months. Hospitals hired 13,000 new people.

Nonfarm payrolls increased by 155,000 jobs last month, with construction companies hiring the fewest workers in eight months, likely because of unseasonably chilly temperatures. Hiring also slowed in restaurants, bars and hotels. Based on the most recent Personal Consumption Expenditures (PCE) price index data from October, inflation in the past year was 2.0 percent (November data will be available later this month).

The leisure and hospitality unemployment rate for the month remained slightly higher than the national average at 5.3 percent, or 729,000 people unemployed. And both manufacturing and services companies expanded at a healthy pace in November, according to a pair of business surveys.

The Fed is still expected to hike its federal funds rate but data showing an absence of inflationary pressures in the job market could mean less aggressive policy action in 2019. Sales of existing homes have fallen 5.4% from a year earlier, the biggest annual decline in more than four years.

Investors, however, are mostly focused on where the economy is headed.

The U.S. central bank is expected to increase borrowing costs on December 18-19 for the fourth time this year. Higher tariffs would compound the risks for a global economy that is already grappling with dismal growth figures from Europe and Japan. More broadly, USA payrolls have grown for 98 straight months, by far the longest stretch of steady hiring on record. That typically signals a weaker economy ahead. The three-month average was 170,000 job additions.

Minutes of the Fed's November policy meeting published last week showed almost all officials agreed another rate increase was "likely to be warranted fairly soon", but also opened debate on when to pause further hikes.

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