US adds 211000 jobs in Nov’15, beat estimates

The median outlook was for four quarter-point rises next year, while their views of the long-term normal level range from between 3.0 percent and 4.0 percent.

Construction firms added 46,000 jobs, the most in two years. They include a strong dollar, which has made exports pricier overseas and squeezed USA manufacturers, and sinking oil prices, which have led drilling companies to slash orders for steel pipes and other equipment.

The closely watched employment report came a day after Fed chair Janet Yellen struck an upbeat note on the economy when she testified before legislators, describing how it had largely met the criteria the U.S. central bank has set for the Fed’s first rate increase since June 2006. Economist surveyed by CNNMoney predicted there would be 192,000 jobs added. Over the past three months, job gains have averaged 218,000 per month. Michael Feroli at JP Morgan told clients the big takeaway from Yellen’s comments was that the conditions for a December rate hike were falling into place. This amount is almost identical to the 199,000 monthly jobs averaged during 2013 and less than 2014’s monthly average of 260,000. Construction spending has jumped to the highest level in eight years, boosted by more home-building and development of more roads and infrastructure.

With more jobs and long-awaited, if still modest pay increases, Americans are spending more on costly items like cars and homes.

“That’s below the level we’d typically see during a robust expansion, but making progress”, Mark Hamrick, senior economic analyst at Bankrate.com, said in a statement. The mining sector lost more than 11,000 jobs, coming to a decrease of more than 123,000 since last December.

Earlier this week, the Institute for Supply Management reported that its index of manufacturing activity had fallen to 48.6 in November, with a figure below 50 indicating contraction.

The market was prepared for the report: US stocks SPX, +1.25% surged, while yields on the 2-year Treasury edged higher.

USA businesses have added 13.7 million jobs in a little less than six years, but White House economic advisor Jason Furman says “We have more work to do”.

Ms. Yellen, in a question on a separate issue, said the USA may be “close to the point at which we should be raising” a benchmark interest rate that has been held near zero since the onset of the financial crisis seven years ago. Retail jobs rose 30,700 and transportation and warehousing employment rebounded after two straight months of declines.

133-c-18-(Jerry Bodlander, AP correspondent)-“at five percent”-AP correspondent Jerry Bodlander reports the strength of the report means Federal Reserve Board policymakers are very likely to raise interest rates”.