Economy added disappointing 155,000 jobs in November – USA TODAY - http://earlyretireonline.com | how to earn money fastDecember 7, 2018 1:33 pm
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The unemployment rate was unchanged at a near half-century low of 3.7 percent, the Labor Department said Friday.
Economists surveyed by Bloomberg had estimated that 199,000 jobs were added last month. Also, employment additions for September and October were revised down by a modest 12,000.
Many analysts expected hiring to slow in November after robust job gains of well over 200,000 the prior month. That total was likely inflated by a rebound in the Carolinas after Hurricane Florence idled workers and curtailed payrolls in September.
Other crosscurrents were also at work last month. Winter storms in the Northeast and Midwest likely reduced employment by about 20,000, Goldman Sachs estimated. Meanwhile, Capital Economics expected a modest bounce-back in job growth in the Florida panhandle after Hurricane Michael tempered October advances but the research firm reckoned the bump would be offset by the effects of the California wildfires.
More broadly, monthly job increases have been surprisingly strong this year, averaging more than 200,000, despite a historically low unemployment rate that’s leading to widespread worker shortages.
Some economists expect the brisk pace to slow. The 10 percent tariff the Trump administration slapped on $250 billion in Chinese imports has dinged business confidence and the recent truce between the two nations came after Labor’s November jobs survey.
Business optimism also may have been dampened by the stock market’s mid-November sell-off and the sputtering global economy. Initial jobless claims, which largely reflect layoffs, have drifted higher in recent months.
Average hourly earnings rose 6 cents to $27.35, leaving the annual gain unchanged at a nine-year high of 3.1 percent.
Employers are likely to continue to bump up wages as they increasingly struggle to find qualified workers. That could lead the Federal Reserve to raise interest rates faster to head off a run-up in inflation. The Fed is expected to raise its key short-term interest rate later this month for the fourth time this year.
Industries that are hiring
Health care led the job gains with 40,000. Professional and business services added 32,000; transportation and warehousing, 25,000; retailers, 18,000, as they geared up for the holiday season; and leisure and hospitality, 15,000.
Wider unemployment measure rises
A broader measure of unemployment — that includes discouraged workers who have given up their job searches and part-time employees who prefer full-time positions – rose to 7.6 percent from 7.4 percent, which was a 17-year low. The number of these so-called involuntary part-time workers increased by 181,000 to 4.8 million.
This gauge of underemployment generally has been falling as the improving labor market draws in many Americans on the sidelines. The increase last month could indicate that positive trend may be petering out. Yet it also could simply reflect normal volatility in the figures from month to month.