According to Yahoo News, the unemployment rate in the United States unexpectedly fell in November, indicating that the labor market may not be cooling as quickly as initially thought. Data from the Bureau of Labor Statistics revealed that the unemployment rate for November was 3.7%, down from 3.9% in October. The US economy added 199,000 jobs in November, up from 150,000 the previous month, as striking auto workers and Hollywood actors returned to the workforce.
Economists surveyed by Bloomberg had expected job gains of 185,000 with unemployment remaining steady at 3.9%. Wages increased by 0.4% on a monthly basis and 4.1% over the previous year, exceeding economists' expectations of a 0.3% monthly increase and a 4% annual increase. The labor force participation rate rose to 62.8%, up from 62.7% in October, while average weekly hours worked increased slightly from 34.3 to 34.4.
The largest job increases were seen in healthcare, with 77,000 jobs added, followed by government employment, which rose by 49,000, reaching its pre-pandemic level. Leisure and hospitality employment increased by 40,000. Investors are now upping bets that the Federal Reserve might need to hold interest rates at their current level for longer, with markets pricing in a 47% chance of a 25 basis point rate cut at the Fed's March meeting, down from a 55% chance just a day prior.
