On Friday, December 4, 2015, the US Department of Labor reported that the jobs growth remained steady in November as the US economy added 211,000 jobs. (compared to the 192,000 jobs, experts were expecting)
The figures, from the Bureau of Labor Statistics, also showed that the jobless rate remained solid at 5 percent for the second straight month, its lowest level since 2008. The retail, food service and construction sectors also saw healthy job increases.
Although the tempo of job creation was less than last month, it was quick enough to keep the Federal Reserve on track to declare the first rise in the cost of credit in nearly a decade later this month.
Janet Yellen, the head of the Federal Reserve, has pointed to the healthy pace of employment growth as a reason to raise the US interest rates later this year. She has noted that a vibrant job market will inevitably result in higher inflation and the Feds need to cut rates to near zero in anticipation of the financial crisis. The labor market strength is of the essence for the US central bank when considering moving the interest rates.
On the brighter side, the labor department adjusted September and October figures to reveal 35,000 more jobs than previously reported. Temporarily, the average hourly earnings rose by four cents to $25.25 or 0.2 percent from 0.4 percent in October.
Manufacturing and mining sectors, however, crippled, purging 1000 posts and 11,000 positions respectively.
“The most important thing from the reading is it’s in line with the expectations,” Juan Perez of Tempus Consulting said. “The change is obviously positive because it’s above 200,000, and last month revised up to 298,000.” He further added that if NFP (non-farm payrolls) and Yellen’s comments are taken into consideration, which essentially means that she is fond of what she is seeing, interest rates are going to rise in the US on December 16.