Economy adds 211000 jobs in November

Companies and government agencies added 211,000 jobs last month while the pace of hiring in October and September was stronger than previously reported, the Labor Department said. Wage growth remained in its same old 2-2.5 percent range, though it dipped down a little between October and November.

Janet Yellen, Fed chair, this week signalled an interest-rate increase was looking increasingly likely this month as she declared the USA economy has “recovered substantially” from the recession and that the central bank had gone a long way towards meeting its goals of maximum employment and price stability.

The Federal Reserve didn’t need healthy job gains to push ahead with a rate hike in December.

Analysts had forecast that 190,000 new jobs would be created in November. “It’s time for liftoff”.

Rate-setters are due to announce their decision on 16 December. Traders also see about even odds of a second rate hike by March. “But that wasn’t well received”. So, absent a major disappointment with Friday’s jobs number or major financial market volatility, we’re on the verge of the first rate hike since 2006.

The Labor Department’s closely watched jobs report will be released on Friday at 8:30 a.m. (1330 GMT). Businesses added more than 200,000 workers. “In a lot of ways, we’re back to the good old days”. It is important to point towards the fact that job gains were broad based across the economy in November, which is being seen as positive.

The economy’s strengths were evident in last month’s hiring patterns: Construction firms added 46,000 jobs, the biggest increase in two years. Construction spending has jumped to the highest level in eight years, boosted by more home-building and development of more roads and infrastructure.

In addition, restaurants added 31,500 positions, and retailers, almost 31,000.

With 211,000 jobs added in the month of November, the Federal Reserve may have just received to increase interest rates for the first time since 2008.

Wage growth eased a bit last month, with average hourly earnings for all employees on private non-farm payrolls rising by 4 cents to $25.25, following a 9-cent gain in October.

“To simply provide jobs for those who are newly entering the labour force probably requires under 100,000 jobs per month”, with anything above that helping “absorb” those who are unemployed, discouraged or had dropped out of the labour market, Ms. Yellen, who was speaking before Congress’ Joint Economic Committee, said in a question and answer session.

Other labor market measures that Fed officials are eyeing as they consider lifting the benchmark overnight interest rate from near zero are expected to have held steady last month.