US employers added a surprisingly strong 199,000 jobs last month, a signal that the economy’s momentum has continued despite the Federal Reserve’s rate-hiking campaign.
November’s payroll gain was above the 180,000 jobs economists expected were added, according to Refinitiv data, which also predicted that the jobless rate would hold steady at 3.9%.
However, the unemployment rate edged down to 3.7% — a sign that the economy could skirt a recession in favor for a so-called “soft landing.”
Fresh data released by the Bureau of Labor Statistics on Friday also noted that wages were up 4% compared to a year ago, to $34.10.
Payroll gains in October were not revised, while September’s figure was revised down by 35,000.
Lower hiring stints combined with higher-than-expected unemployment historically signals a recession, Bloomberg economists Anna Wong and Stuart Paul noted.
“It’s harder for job seekers to find work, and longer stints of unemployment usually lead to persistent increases in the unemployment rate,” Wong and Paul told the outlet.
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