Both economists and investors expect the November jobs report to be a bit peppier than October’s due to the resolution of major national strikes. The anticipated bump in jobs, however, is unlikely to trigger a rate hike at next week’s Federal Open Market Committee meeting.
The U.S. added 172,500 jobs in November, according to economists surveyed by FactSet. The range of projections is wide:
Morgan Stanley
estimates 200,000 jobs were added last month, while José Torres, senior economist at Interactive Brokers, estimates 140,000.
Those estimates are higher than the 150,000 jobs logged in October, though the October number may shift with revisions. Because of slower employer participation, the Bureau of Labor Statistics has been making revisions to recent jobs figures.
Barring any surprises, Friday’s jobs report shouldn’t dramatically impact the outlook for the Fed’s rate decision next Wednesday. The likelihood that the Fed will keep its target rate at 5.25%–5.5% is currently at 97.3% as of Thursday morning, according to the CME FedWatch Tool.
Most of the bump in November’s payrolls is expected…
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