According to a report from the Labor Department expected to be released on Friday, hiring in the United States likely rebounded in November after a disappointing October impacted by hurricanes and strikes. The report is expected to show that employers added about 208,000 jobs in November, a significant improvement from the meager gain of 12,000 jobs in October – the lowest since December 2020. The job market has cooled from its earlier highs, but the recent slump was largely due to temporary factors like hurricanes and strikes.
Economists predict that the unemployment rate remained steady at 4.1% in November, a sign of job security for Americans. Despite the slowdown in hiring this year, the economy has shown resilience under the pressure of high interest rates. The government’s efforts to combat inflation led to the Federal Reserve raising interest rates 11 times in 2022 and 2023, with annual economic growth exceeding 2% in eight of the last nine quarters. Inflation has also dropped from its peak in June 2022. Despite job growth slowing down, the economy continues to grow, with businesses still seeking workers.
Economists caution that the job market may be weaker than it appears, as the Labor Department has revised down its initial estimates of job growth for several months this year. The average unemployed American in October had been out of work for nearly 23 weeks, the longest stretch in years. The progress against inflation and the easing of hiring pressure on companies have led the Federal Reserve to cut its key rate in September and again last month. Another rate cut is expected in the upcoming Fed meeting. Wage growth has also seen a modest increase, with average hourly wages rising 3.9% year-over-year.
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