More pressure on US Fed as jobs hold strong

Economists had forecast that Friday’s report would show that 200,000 more jobs were added last month and that the unemployment rate remained at 5 percent, according to data firm FactSet.

Labor said job gains have averaged 210,000 per month in 2015, up from 206,000 at the end of October.

The big gain during October was also revised upward another 18,000 and weaker payroll or September was also revised up another 8,000. The jobless rate held at a more than seven- year low of 5 percent.

The number of people employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 319,000, to 6.1 millio, in November, after declines in September and October.

The strong report alleviates some concerns that the US economy was cooling just when the the Fed was about to hike rates. While it’s good that the economy is creating jobs, the fact higher rates are a practical certainty isn’t great for stocks.

The civilian labor force participation rate was at 62.5 percent and changed little in November, the Labor Department said.

November job creation increased by 211,000 in November, giving the final confirmation that the Fed will likely raise rates this month, the Bureau of Labor Statistics said. “Some who are counted as out of the labour force might be induced to seek work if the likelihood of finding a job rose or if the expected pay was higher”. This is why the solid jobs report should dispel any doubts about December hike, experts believe. With 163,000 jobs added, the services sector accounted for the bulk of the increase in employment last month. It is imperative to state that employers have now added an average of 213,000 a month over the last six months. It may have been her strongest comment yet pointing toward a rate increase at the Fed’s December 15 and 16 meeting.

November’s robust reading means a U.S. Federal Reserve rate hike later this month looks certain, said Steve Blitz, chief economist at New York-based ITG Investment Research Inc.

Auto sales, for example, jumped to a 14-year high in November, boosted in part by Black Friday deals offered throughout the month.

Manufacturing has been crippled by a strong dollar, efforts by businesses to reduce bloated inventory and spending cuts by energy companies scaling back well drilling and exploration in response to sharply lower oil prices. “Mining and information lost jobs”.