The U.S. economy added 178,000 non-farm payroll jobs in November and closely matched the 180,000 consensus estimate from briefing.com while the U.S. unemployment rate declined to 4.6 percent from 4.9 percent, the lowest level in 9 years, according to the latest report today from the Bureau of Labor Statistics.
Job gains were highest among professional and business services which added 63,000 jobs in November followed by employment in administrative and support services 36,000.
In 2016 jobs gains have averaged 180,000 per month compared with an average monthly increase of 229,000 in 2015.
During the past 3 months, job gains have averaged 176,000 per month.
The jobs report for September and October were revised 2,000 less than previously reported.
September job gains was revised up from 191,000 to 208,000 while the change for October was revised lower from 161,000 to 142,000.
Average hourly earnings for all employees on private nonfarm payrolls declined by 3 cents in November to $25.89 after an 11-cent increase in October.
The average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours in November.
The decent jobs report in November bolsters the case for a rate hike later this month by the U.S. Federal Reserve, especially with inflation rising and crude oil prices rebounding.
On November 30th, the Bureau of Economic Analysis reported that Core PCE Inflation, the Federal Reserve’s primary gauge for measuring inflation, rose to 1.7 percent in October and closer to the Fed’s 2 percent inflation target.
On Wednesday private sector processor ADP reported that 216,000 private sector jobs were added in November, rising above the 160,000 consensus estimate from briefing.com.
“For the month of November 2016 we saw very strong job growth that has almost doubled in gains over October 2016,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute in a released statement.
“This growth was seen in primarily consumer-driven industries like retail and, leisure and hospitality – across all company sizes. Overall, consumers are feeling confident and are driving the strong performance we currently see in the job market” Yildirmaz added.