12 million jobs added since the recession

Employers have now added a robust average 213,000 jobs a month over the past six months. September and October data were revised to show 35,000 more jobs than previously reported. Futures indicated a 100 point gain in the Dow Jones industrial average when the market opens at 9:30 a.m. ET. The increase in the number of jobs by 211k was exactly in line with the monthly average in 2015, even if it cooled somewhat relative to a very strong and upwardly revised +298k in October.

A healing job market is giving the U.S. Federal Reserve reason to pull back on economic stimulus by ending an unprecedented period of near-zero interest rates.

Friday’s employment report offered further evidence that the us economy is strong enough for the Fed to raise rates at its next policy-making meeting in mid-December.

“We believe the hurdle for dissuading the Fed from action at this time is extremely high”, said Michelle Girard, chief economist at RBS in Stamford, Connecticut. “The November employment release paves the way for Fed action in December”.

Manufacturing employment, meanwhile, slipped by 1,000 and jobs in mining and logging, which has been hit by the slump in oil investment, fell by 11,000.

St. Louis Fed President James Bullard, who is also not now a voting member of the FOMC, voiced his support for an upcoming rate hike in a Friday afternoon speech. But with low gas prices and a strong US dollar, annual inflation is close to 0%.

The fact that unemployment rate is now at a seven year low means that people are now confident in the jobs market, experts said. Testifying before Congress on Thursday, Yellen said that the difference in policy stances between the Fed and the more accommodative European Central Bank is a factor behind the dollar’s appreciation.

Average hourly earnings jumped to $25.25 and are now up 2.3 percent from this time previous year. The services sector will likely account for the bulk of the increase in employment, but retail and courier payrolls are a wild card as company are now starting their holiday hiring a bit earlier than in prior years. The clear message from the labor market to the Fed is: ‘Just do it!’ ” said Harm Bandholz, chief US economist at UniCredit Research in NY.

One of the most bearish forecasts far has come from ABN Amro, which suggests gold will break below US$1,000 before the end of the first quarter next year and drop to a low of US$900 or below later in 2016.

Among the major worker groups, the unemployment rates for adult men (4.7%), adult women (4.6%), teenagers (15.7%), whites (4.3%), blacks (9.4%), Asians (3.9%) and Latinos (6.4%) showed little or no change in November.

The US economy has created 8.1 million jobs over the past three years, the fastest pace since 2000.

On the other hand, USA central bankers have missed their inflation target for more than three years. “The job market still has a lot of steam and the Fed should be comfortable raising interest rates”.