Job Growth Slowed in November, but Wage Growth Accelerated
The economy created far fewer jobs than economists expected in November, and the unemployment rate rose, indicating that demand for workers is easing as growth slows.
But the average hourly wage rose by a surprisingly large 0.4%, lifting the pace of earnings growth to the highest level in nearly two years, and throwing a bit of cold water on hopes that the Fed will act soon to stimulate the economy with interest-rate cuts.
According to the November employment report (definition | chart | source ), released today by the Labor Department, nonfarm payrolls added 94,000 new jobs in November. Economists polled by Reuters had forecast 140,000 new jobs, on average.
Further establishing the slower pace of job growth, the number of jobs created in October was revised to 77,000 from 137,000. As a result, the 12-month average pace of job growth fell to 176,000 in November, the lowest since April 1996.
|Employment Report at a Glance|
|November||October Revised||October Original|
|Average hourly earnings||+0.4%||+0.4%||+0.4%|
|Average workweek||34.3 hrs.||34.4 hrs.||34.3 hrs.|
|Manufacturing workweek||41.1 hrs.||41.4 hrs.||41.3 hrs.|
|Source: Labor Department|
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