The U.S. labor market saw a strong rebound in November, with nonfarm payrolls increasing by 227,000, surpassing expectations of 214,000, according to the Bureau of Labor Statistics' report released Friday. This marks a significant recovery from October's revised gain of just 36,000, which had been impacted by widespread labor strikes and severe storms in the Southeast.
Despite the robust job growth, the unemployment rate inched up to 4.2%, as anticipated, reflecting a slight drop in the labor force participation rate and a reduction in the labor force size. A broader unemployment measure, which includes discouraged workers and those in part-time roles for economic reasons, also rose to 7.8%.
Sector Highlights:
Health care led the gains, adding 54,000 jobs.
Leisure and hospitality followed closely with 53,000 new positions.
Government employment increased by 33,000.
These sectors have been consistent drivers of job growth in recent years. Conversely, retail trade shed 28,000 jobs ahead of the holiday season, likely influenced by a later-than-usual Thanksgiving, which may have delayed seasonal hiring.
Wage Growth on the Rise: Workers saw their paychecks grow, with average hourly earnings climbing 0.4% for the month and 4% year-over-year, both slightly above forecasts.
This report underscores a labor market that remains resilient amid broader economic challenges, with wage growth suggesting sustained demand for workers even as some sectors, like retail, face seasonal adjustments.