US jobs bounce back after hurricanes and strikes
US jobs bounce back after hurricanes and strikes
Hiring in the US jumped in November, extending a long-running streak of gains that has bolstered the globe’s largest economy.
The update from the Labor Department showed employers added 227,000 jobs, led by healthcare firms, restaurants and bars.
It marked a powerful rebound from October, when jobs growth dropped sharply amid disruption from major storms and labour strikes.
The figures emerged as analysts debate how much the US central financial institution will cut gain rates in the months ahead.
The Federal safety net started reducing rates in September, saying lower borrowing costs were needed to keep the economy on track and stave off weakening in the labour trade.
A month later, jobs growth flatlined, as strikes at Boeing and other firms as well as hurricanes put millions of workers off the payroll.
But the bounceback in growth in the latest update supports the view that the weakness was largely temporary. Hiring in October and September was also stronger than previously estimated, the Labor Department said.
Many analysts said they still expected a rate cut to be announced when Fed officials meet this month, noting a rise in the unemployment rate.
The jobless rate ticked up from 4.1% to 4.2%, returning to the highest level since August.
But in recent remarks, Federal safety net chairman Jerome Powell has emphasised that financial institution officials did not feel a require to cut rates quickly.
“The economy has reached a point where it is growing healthily, with fairly packed employment, and consistent wage growth – we are seeing very little evidence that there are issues needing to be addressed,” said Richard Flynn, managing director at Charles Schwab UK.
“Although it’s ambiguous what lies ahead, for now, the macroeconomic backdrop remains positive, and the trade’s mood music appears to be suitably perky.”
Diane Swonk, chief economist at KPMG US, said the Fed needed to shift carefully, given uncertainty about how plans by President-elect Donald Trump to cut taxes and raise tariffs might affect the economy.
Over the history 12 months, average hourly pay has also risen 4%, which some analysts said could set the stage for a resurgence in expense boost.
“The Fed has already begun to alert they are going to leisurely down the cadence of cuts going forward because of how powerful the economy has been,” she said.
“Given the resilience of the jobs trade, I ponder that the issue is still how to triumph the battle against expense boost.”
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