The latest print from the Labor Department shows the U.S. economy added 263,000 new non-farm jobs and the headline unemployment rate remained steady at 3.7% for the month of November.
The figure was better than the Street’s expectations of 200,000 new job additions, with major job gains in leisure and hospitality, healthcare, and government. Sectors including retail trade, transportation, and housing, on the other hand, witnessed declines.
Further, large and small businesses have been undertaking headcount reductions while medium establishments seem to have fared better during this period.
Importantly, permanent job losses rose to 1.4 million during the month.
Today’s numbers show the labor market still has some steam left in it despite the recent mega rate hikes by the Federal Reserve.
Fed Chair Jerome Powell’s speech earlier this week hinted at a possible reduction in the pace of rate hikes but after today’s new job numbers a complete change in the central bank’s aggressive stance could still be quite a while away.
A better-than-expected jobs report suggests a resiliency in the economy and the Fed’s goal of reigning in inflation will require a continued aggressive stance on rate hikes. Broader indices are already down between 1.5% and 2.5% today while yields are rising.
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