Fed likely to raise interest rates on strong jobs report

Still, economists expect the creation of millions of new jobs and a falling unemployment rate to put more upward pressure on wages in the near future.

“They’re back at work at jobs that have a higher than average hourly wage”, says Patrick O’Keefe, former deputy assistant secretary for the Department of Labor, now director of economics at CohnReznick accounting and consulting. Yun said that rising rates could have more impact on the upper-end of the commercial real estate market, where prices have shot above the pre-crisis peak and capitalization rates have fallen. And the government revised up its estimated job growth for September and October by a combined 35,000.

Economists surveyed by The Wall Street Journal had expected payrolls to rise by 200,000 and the jobless rate to hold at 5 per cent. On Friday, Dec. 4, 2015, the government’s jobs report will offer some clues about whether the modest pay gains will continue. Within this industry, accounting and bookkeeping services added 11,000 jobs, and employment continued to trend up in computer systems design and related services (+5,000).

“The labor market exhibits remarkable resilience in the face of a weaker global economy, the high dollar and persistently low commodity prices”, Moody’s Analytics senior economist Sophia Koropeckyj said.

During the recession, the Federal Reserve cut interest rates to a record-low to boost economic growth and jobs.

Fed Chair Janet Yellen’s singalled into a joint Congressional committee the Federal Reserve was on course for a December rates increase.

“The bottom line: The November report ensures that the Fed will move at the December meeting,”American Action Forum, a center-right Washington-based think tank said in a statement on the U-6 number”.

The unemployment rate remained at 5 percent for the second straight month as more Americans entered the workforce to look for jobs.

The November jobs report was the last major hurdle for the Fed.

In all, the data from the Labor Department shows an economy growing at a steady pace even if the increase in gains remained subdued due to many Americans still not working or are in part time work because there are not full time positions for them.

The sizable gain in construction jobs last month, even as the Fed is preparing to raise rates, suggests that few expect higher borrowing costs to derail home building or sales.

There were in November 594,000 discouraged workers who had given up looking for work, little changed from a year earlier.

“Wage growth moderated somewhat, but the labor force participation rate ticked up for the first time since May”.

The unemployment rate was unchanged at 5%, and the number of unemployed came in at 7.9 million, essentially unchanged.

Job growth was scattered across a range of industries in November. Retail trade employment grew by 31,000 jobs; food service and drinking establishment employment, by 32,000 jobs; professional and technical service, by 28,000 jobs; and health care employment, by 24,000 jobs.