–Payrolls +266,000; Sept/Oct Revised +41K; Unemp Rate 3.5%; Annual Wages +3.1%
By Denny Gulino
WASHINGTON (MaceNews) – The November job report’s 266,000 payrolls surge Friday exceeded all expectations even without counting the end of the GM strike, challenging the view that the long and somewhat subdued economic expansion should be showing signs of exhaustion.
The unemployment rate of 3.5% was improved by a tenth to what it was in September, the best in half a century. For men and women workers 20 and older, the rate was 3.2%.
The month’s jobs broadly based performance, recharging the pace of jobs gains compared to the middle of the year, argued against any additional accommodation from the Federal Reserve, which reviews policy again next week, again, even if the bounceback of auto workers was discounted.
Average hourly wages, however, remained throttled back at 3.1% over the year, in a neighborhood far weaker than the 4% and greater typical before the financial crisis.
The end of the GM strike boosted the month’s manufacturing payrolls, with the motor vehicles category contributing 41,000 to the 54,000 total, having dropped 43,000 in October when the strikers were first accounted for.
The revisions of September and October were both positive, adding 41,000 payroll slots above what was previously reported and further embellishing the November report. After the revisions, job gains have averaged 205,000 in the most recent three months, closer to last year’s monthly average of 223,000 and providing an upward push to an average for the first 11 months of the year, 180,000.
The health care category rebounded sharply from a weak October, clocking 45,000 jobs, well above the past year’s average monthly gains of 34,500.
Leisure/hospitality was also strong, adding 45,000 jobs, part of four months of exceptional strength.
Professional and business services, a barometer of the pace of activity, was also a standout number, up 31,000, also above the past year’s average per month of 21,200.
Employment in transportation and warehousing “continued on an upward trend” with 16,000 more jobs. Half of it in warehousing.
Financial activities rose 13,000, 7,000 of it in loan activity.
Oil patch and mining jobs continued on the downtrend since the spring, losing 7,000 jobs.
Retail trade remained weak because of setbacks in clothing stores, adding only 2,000 slots.
The month was not appreciably helped by construction, wholesale trade, information and government.
The comprehensive unemployment rate dubbed “U-6,” including more categories than the headline rate, improved a tenth to 6.9%, back to what it was in September.
The latest labor participation rate, at 63.2, is lower by a tenth than October and back to what it was in August, September, January and February.
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At midmorning, stock markets continued to reflect their jobs report acceleration, with close to 1% gains and the Russel 2000 outperforming.