The US economy added 227,000 jobs in November, rebounding sharply from the disruptions caused by storms and a major strike that hampered growth in October. The latest data fueled expectations that the Federal Reserve may opt for another rate cut before the year ends, as policymakers assess the economy’s strength.
The Bureau of Labor Statistics reported Friday that the seasonally adjusted increase in November was accompanied by a revision that added 56,000 jobs to the previous two months’ totals. Despite the uptick in job creation, the unemployment rate remained steady at 4.2 percent, with 7.1 million Americans still jobless.
Employment growth in November was particularly strong in health care, leisure and hospitality, government, and social assistance. However, the retail trade sector saw job losses, highlighting ongoing shifts in consumer spending patterns.
The positive labor market report was welcomed by investors, with US stocks responding favorably. The S&P 500 rose by 0.2 percent, hitting a new all-time high, while the Nasdaq gained 0.8 percent to set a record of its own. The Dow Jones Industrial Average, however, declined 0.3 percent.
The data suggests that while the job market remains strong, the persistent growth could raise inflation concerns, prompting the Federal Reserve to continue its cautious approach to interest rates. With a December 18 policy meeting on the horizon, market watchers will be keen to hear more details on the central bank’s strategy for 2025, especially as President Donald Trump retakes the reins of government next year.
Next on the market’s watchlist is inflation data for November, which are due on December 11.
The economy’s resilience in November could pave the way for more monetary easing, ensuring continued growth despite potential inflationary pressures.
Another rate cut from the Fed would likely provide the Bangko Sentral ng Pilipinas that final cue to ease monetary policy further at its meeting on December 19.
