November Job Report and Federal Reserve Interest Rate Decisions
In November, job creation rebounded with 227,000 new nonfarm payrolls, while the unemployment rate increased to 4.2%. Worker pay rose by 0.4% on a monthly basis and 4% annually. The report raised questions about the labor market's impact on Federal Reserve decisions. Stock futures rose, and traders bet on a rate cut. Fed Chair Powell remains patient on interest rate decisions.
Key Points
- Questions raised about the state of the labor market and impact on Federal Reserve decisions
- Fed Chair Powell remains patient on interest rate decisions
- Traders bet on a rate cut following the payrolls release
Pros
- Increase in nonfarm payrolls by 227,000 in November
- Worker pay rose by 0.4% on a monthly basis and 4% annually
- Job gains in health care, leisure and hospitality, and government sectors
Cons
- Unemployment rate increased to 4.2%
- Retail trade saw a decline of 28,000 jobs
- Labor force participation rate declined