The US economy added 199,000 jobs in November, an improvement from the previous month as auto workers and striking workers returned to the labor market.
The unemployment rate was 3.7%, down from 3.9% in October.
Economists even expected an increase of 185,000 jobs with the unemployment rate remaining stable from the previous month at 3.9%.
Here is a summary of the key numbers compared to expectations from the economists interviewed:
Non-agricultural wages: 199,000 vs. +185,000 initial expectation. (+150,000 before)
Unemployment rate: 3.7 vs. 3.9% of initial expectations. (previously 3.9%)
Average monthly income: 0.4% vs. +0.3% of initial expectations. (+0.2% previously)
Average annual income: 4.0 vs. +4.0% initial expectations. (+4.1% previously)
Average weekly working hours: 34.4 vs. 34.3
Data released earlier this week showed signs of a slowing labor market. On Tuesday, the latest Job Openings and Labor Turnover Survey, or JOLTS report, showed the ratio of open jobs to the number of unemployed workers fell to 1.34, the lowest reading since August 2021.
Additional labor market data on Wednesday from ADP showed private wages rose more slowly than expected last month and wages continued to decline. In particular, ADP noted that the decline in employment in the tourism and hospitality sector in November may be a sign of a normal labor market, and therefore wage growth may slow next year.
"Restaurants and hotels are the biggest job creators during the post-pandemic recovery," said Nela Richardson, chief economist at ADP. "But that factor is over, and now trends in the tourism and hospitality sector suggest that the economy as a whole will see more modest job and wage growth in 2024."
