3 things to know about the November 2018 jobs report
Job growth fell short of predictions, unemployment stayed steady, while average wages increased.
The U.S. economy added 155,000 jobs in November, notably below the median estimate of 198,000, according to Bloomberg.
Here are some of the highlights from the report.
1. Unemployment Rate Remains Low
While job growth may have fallen short of expectations, the unemployment rate stayed steady at 3.7 percent.
Marketwatch: “An unexpected surge in hiring in 2018 has knocked the unemployment rate to the lowest level since 1969. The jobless rate remained at 3.7% for the third month in a row.”
New York Times: “The unemployment rate and new claims for jobless benefits are at or near record lows. And the average monthly increase in payrolls this year is more than enough to keep the jobless rate below 4 percent.”
Washington Post: “Some economists worry 2018’s pace of growth isn’t sustainable next year with such a tight labor market. The unemployment rate reached 3.7 percent in September and held that near-half-century low in October. Employers complain that a talent shortage is thwarting their growth plans, asserting that it is increasingly difficult to find people with the right skills.”
2. Wage Growth Unchanged
Yahoo! Finance: “Wages were in-line with expectations, with average hourly earnings rising 0.3% over last month and 3.1% over the prior year. Wage growth has been closely tracked for signs of inflation pressures in the economy. In October, wages rose 3.1% over the prior year, the fastest pace of annual wage growth since April 2009 while 250,000 new jobs were created.”
Marketwatch: “The flush of new jobs is contributing to the fastest pay gains for workers in nine years. The amount of money the average worker earns rose 6 cents to $27.35 an hour last month. The increase in pay over the past 12 months was unchanged at 3.1%, but that’s the biggest advance since 2009.”
Chicago Tribune: “Still, some economists caution that not every worker is reaping the benefits. Labor leaders say wage growth among service workers is lacking. Some blame declining union membership and the rise of subcontractors, which has cramped pay and access to paid time off and health insurance.”
3. Some Industries Grew More than Others
CNBC: “Job creation skewed to services-related industries, which added 132,000, while goods producers grew by 29,000, the lowest increase since March. Government jobs declined by 6,000.”
Chicago Tribune: “Health care, construction, transportation and warehousing have led the recent hiring spree, and manufacturing has seen unusually high levels of growth, with an increase of 296,000 jobs over the past year.”
New York Times: “Some of the strongest gains to payrolls this year have been in manufacturing — long a buttress of middle-class employment. In November, manufacturers added 27,000 jobs. That comes on top of the nearly 300,000 positions created in the previous 12 months.”
Wishing for a new job this holiday season? Check out our list of companies hiring this month.