USA unemployment rate holds steady at 5 pct. in November

September and October data were also revised up markedly to show that the USA economy added 35,000 more jobs than previously reported.

Not including the farm sector, the number of new jobs created rose by 211,000 in November. He is confident that the labor department’s recent figures are a clear indication that the labor market wants the rate hike as much as Wall Street does.

Pay gains in November were modest. In a separate report Friday, the government said US exports fell to the lowest level in three years.

Unemployment rates remain at a 7 1/2 year low, holding steady at 5%.

The U.S. Department of Labor said today that there were job gains in construction, professional and technical services, and health care.

Employers have now added an average 213,000 jobs a month over the past six months.

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.

Still, construction firms, which generally pay higher-than-average wages, added 46,000 jobs, the most in two years.

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.

United States equity markets took the jobs report as a confirmation that the economy continues to grow at a good pace, with the S&P 500 surging 2.1 per cent.

While the jobless rate remained the same, average hourly earnings crept up – by four cents – following a sharp increase the previous month.

“The Fed will raise rates in December and data are now being watched primarily to determine how quickly rates rise next year and beyond”, echoed Chris Low, economist at FTN Financial. Sales of new homes have jumped almost 16 percent. Industry analysts expect auto sales to total a record 17.5 million for 2015. Average hourly earnings have risen by 2.3 percent for the year so far. The Nasdaq composite rose 104.74, or 2.1 percent, to 5,142.27. All this suggests that the US may be nearing full employment, the point beyond which inflation tends to accelerate.

Americans are eating out more often, driving restaurant sales much higher. “While this report can help justify a rate hike in December, it can’t justify anything more than a very gradual path of rate hikes”, said Brian Jacobsen, chief portfolio strategist for Wells Fargo Funds Management.