The U.S. employment sector is expected to strengthen in November, in line with the current recovery in the country’s economy.
Data by the Department of Labor will be scrutinized by investors, where it is forecast to show an increase of 553,000 jobs last month from 531,000 previously recorded.
Meanwhile, the unemployment rate is projected to fall to a 20 -month low of 4.5% and wage growth will continue to rise.
Among the factors that bolstered expectations that the NFP report would increase was a follow -up to stronger -than -expected US private sector ADP employment data despite a slight decline from previous readings.
Meanwhile, the unemployment claims data continued to display a positive reading last week, although slightly increased from the previous reading. However, the 4 -week moving average shows the number of claims falling to its lowest level since March 2020.
Unemployment claims also dropped below 2 million for the first time since the pandemic began. Layoffs were at their lowest level in 28 years with employers struggling to find workers.
The rising labor market is one of the main reasons why the Federal Reserve (Fed) is worried about inflation because higher wage demand can trigger inflation.
