Unemployment Rate Rises in the US in November

Unemployment Rate Rises in the US in November.
This is according to a report from the U.S. Bureau of Labor Statistics.
Here are the details.

The US Bureau of Labor Statistics (BLS) reported that the national unemployment rate increased to 4.2% in November, a rise of one-tenth of a percentage point compared to the previous month.

However, despite this slight increase, job creation showed significant recovery compared to October.

A total of 227,000 new jobs were added, an increase of 191,000 from the revised October figure.

This result surpasses the monthly average of the past 12 months, which stood at 186,000 new jobs, reinforcing the idea that the US labor market continues to display remarkable resilience.

Unemployment Rate Rises in the US in November

#Attention | Payrolls in the United States increased by 227,000 in November, exceeding expectations; the unemployment rate is 4.2% pic.twitter.com/IL9SeSBrw8

— Diario La República (@larepublica_co) December 6, 2024

This trend is closely monitored by the Federal Reserve (Fed), as decisions on interest rates depend partly on the health of employment and other economic indicators.

In absolute terms, there are currently 7.1 million unemployed people in the US, an increase from the 6.3 million reported in November 2023, when the unemployment rate was 3.7%.

Although unemployment remains higher compared to last year, the current figures reflect recovery with the addition of new jobs.

Key sectors driving job creation include healthcare, leisure and hospitality, government, and social assistance.

Healthcare, Leisure, and Hospitality Lead Gains

The healthcare sector added 54,000 jobs, while leisure and hospitality contributed 53,000.

Additionally, government employment grew by 33,000 positions, and the transportation equipment manufacturing sector saw an increase of 32,000.

This was partly due to the return of workers who had been on strike, which was identified as one of the factors behind October’s weaker figures.

However, not all sectors showed positive trends, as reported by the EFE news agency.

The retail trade sector experienced a loss of 28,000 jobs, highlighting a negative trend in this area.

Wages See Growth in the US

Regarding wages, average hourly earnings increased by 13 cents, or 0.4%, reaching $35.61.

Over the past 12 months, wages have grown by 4%, reflecting an upward trend in worker earnings.

These data come just days before the Federal Reserve holds its final meeting of the year on interest rates.

This is scheduled for December 17 and 18.

The Fed May Cut Interest Rates by 25 Basis Points

Economists expect the Fed to potentially cut interest rates by 25 basis points, though a small portion of experts believe rates will remain unchanged.

Despite the rise in unemployment, the US economy continues to show sustained growth.

In the third quarter of 2024, the Gross Domestic Product (GDP) grew by 0.7%, maintaining the same growth rate recorded in the second quarter of the year.

This reinforces the view that the country is not at risk of entering a recession in the short term.

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