By BBC (Business) | Created at 2024-12-06 14:33:21 | Updated at 2024-12-22 19:51:25
2 weeks ago
Hiring in the US jumped in November, extending a long-running streak of gains that has bolstered the world's largest economy.
The report from the Labor Department showed employers added 227,000 jobs, led by healthcare firms, restaurants and bars.
It marked a strong 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 bank will cut interest rates in the months ahead.
The Federal Reserve started reducing rates in September, saying lower borrowing costs were needed to keep the economy on track and stave off weakening in the labour market.
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 report supports the view that the weakness was 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 Reserve chairman Jerome Powell has emphasised that bank officials did not feel a need to cut rates quickly.
Richard Flynn, managing director at Charles Schwab UK, said the report could persuade the Fed to hold off cutting rates, especially amid uncertainty about how plans by President-elect Donald Trump to cut taxes and raise tariffs might affect the economy.
"The economy has reached a point where it is growing healthily, with fairly full employment, and consistent wage growth – we are seeing very little evidence that there are issues needing to be addressed," he said.
"Although it's unclear what lies ahead, for now, the macroeconomic backdrop remains positive, and the market's mood music appears to be suitably perky. In fact, it's difficult to dig out any kind of negative message other than frothiness."
