Friday morning The Bureau of Labor Statistics reported the
strongest payroll additions in years. Employers added 321,000 jobs in November, a number far greater than the 230,000 economists were predicting. The unemployment rate, which is drawn from a different survey of households, remained steady at 5.8% the lowest level since the recession.
“If you don’t like this one nothing is going to make you happy,” declared PNC economists Stuart Hoffman. TD Ameritrade Chief Strategist JJ Kinahan said that Friday’s headline number and revisions were “outside any estimate I had seen even on the high side. Overall this is a home run in terms of jobs created.” Mark Lindbloom, portfolio manager at Western Asset Management, pointed out that this is a hard report to poke holes in, calling it a good report “across the board.”
The October payroll count, which was initially weaker than hoped, was revised higher from plus 214,000 to plus 243,000. The September number was also increased from plus 256,000 to 271,000. Total employment gains in September and October were therefore 44,000 greater than what BLS — a division of the Department of Labor — previously reported. Average monthly payroll gains for the 12 months leading up to November were 224,000. January is now the only month of 2014 with job gains below 200,000.
Average hourly earnings rose by 9 cents, or 0.4%, in November — the biggest growth since June 2013 — to $24.66, bumping the year-over-year growth rate to 2.1% from 2%. The workweek was little changed at 34.6 hours. The labor force participation rate held at 62.8%. The employment-population ratio was also unchanged at 59.2%
The sector with the most new jobs in October was professional and business services with 86,000 jobs added, much higher than the 57,000 prior 12-month average for the space. Some of that gain was in temporary help services — plus 23,000 — and accounting and bookkeeping services — plus 16,000. Unsurprisingly for the season retail trade added 50,000 jobs, more than double its 22,000 prior 12 month average. Health care added 29,000 jobs, manufacturing added 28,000 and financial activities added 20,000. All other sectors saw growth as well.
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