US Economy Is Still Robust With Labor Market Adding 199,000 Jobs in November

By Jace Dela Cruz

Dec 09, 2023 03:29 AM EST

The US workforce added 199,000 jobs in November, and the unemployment rate fell to 3.7% as the world's largest economy continues to struggle with higher interest rates. 

According to the US Bureau of Labor Statistics, the growth was particularly notable in the healthcare and government sectors, with additional contributions from the manufacturing industry due to the workers' return from a strike. However, the retail trade sector experienced a decline in employment.

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NEW YORK, NEW YORK - SEPTEMBER 05: People walk outside of the New York Stock Exchange (NYSE) on September 05, 2023 in New York City.

US Unemployment Rate in November

Friday's report on employment growth is reportedly a sign of a still-sturdy labor market. Edging down from 3.9% the previous month, the bureau said the unemployment rate in November stood at 3.7%, with the number of unemployed persons showing little change at 6.3 million. 

The bureau said the unemployment rate for teens (11.4 percent) fell, while the jobless rates for adult men (3.7 percent), adult women (3.1 percent), Whites (3.3 percent), Blacks (5.8 percent), Asians (3.5 percent), and Hispanics (4.6 percent) showed slight or no change.

Long-term unemployed individuals, those jobless for 27 weeks or more, saw a decrease to 1.2 million, comprising 18.3% of all unemployed persons. The employment-population ratio rose to 60.5%, and the labor force participation rate remained at 62.8%, maintaining stability since August.

Further insights revealed a decrease in the number of persons employed part-time for economic reasons by 295,000 to 4 million in November. On the other hand, those not in the labor force but desiring employment were at 5.3 million, a little different from the prior month.

According to the bureau, these individuals were not counted as unemployed since they were not actively looking for work during the four weeks preceding the survey or were unavailable to work.

Among those not in the labor force who wanted a job, the number of individuals marginally attached to the labor force changed slightly to 1.6 million last month. This category includes individuals available for work who had looked for a job sometime in the previous 12 months but not in the four weeks preceding the survey.

The number of discouraged workers, a part of the marginally attached, who believed that no jobs were available for them, was at 421,000, which was essentially unchanged from the previous month.

READ ALSO: Federal Reserve Poised to Cut Interest Rates 6 Times in 2024 as US Economy Slows Down: ING

Survey Data on Establishments

Based on the establishment survey data, nonfarm payroll employment rose to 199,000 in November, slightly below the average monthly gain of 240,000 over the past 12 months but aligning with recent trends. 

The healthcare sector saw an increase of 77,000 jobs in November, surpassing the average monthly gain of 54,000 in the previous year. Noteworthy contributions came from ambulatory healthcare services, hospitals, and nursing and residential care facilities.

Government employment experienced a growth of 49,000 in November, aligning with the average monthly gain of 55,000 observed over the preceding 12 months. Manufacturing witnessed a surge of 28,000 jobs due to workers' return from a strike, while retail trade employment decreased by 38,000.

In November, the average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents to $34.10, marking a 4% increase over the past 12 months, while average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $29.30.

READ MORE: Goldman Sachs Says Global Economic Growth in 2024 Will Exceed Expectations

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