U.S. Job Growth Slows to 210,000 in November, Missing Expectations

In November, the U.S. economy saw the addition of 210,000 new jobs, with the unemployment rate decreasing to 4.2%, marking a slight improvement from October's 4.6%.

Despite economists predicting job growth near 550,000, the actual increase was less than half, according to the Department of Labor (DOL), which also reported a 542,000 decline in unemployed individuals, bringing the total to 6.9 million.

Although unemployment has been steadily declining, both the unemployment rate and the total number of unemployed remain elevated compared to pre-pandemic figures of 3.5% and 5.7 million, respectively.

Year to date, monthly job additions have averaged 555,000, with a net gain of 18.5 million jobs since April 2020; however, the labor market still lags behind February 2020 by 3.9 million jobs, a 2.6% shortfall.

The November data precedes the impact of the COVID-19 Omicron variant, first identified late in the month. Contrasting the DOL’s subdued numbers, private sector employers reported robust weekly payroll growth, including 534,000 new jobs added last week according to ADP.

Rising Labor Participation and Wage Growth

The labor force participation rate inched up to 61.8% in November as more Americans entered or re-entered the workforce, though it remains below the pre-pandemic average of about 63%. Meanwhile, average hourly wages increased by 8 cents to $31.03, reflecting a 4.8% rise year-over-year.

Sector-Specific Job Gains

The leisure and hospitality sector, encompassing restaurants, bars, and hotels, experienced minimal hiring with only 23,000 jobs added in November, a slowdown compared to previous months. The largest job gains were seen in professional and business services (+90,000), transportation and warehousing (+50,000), and construction (+31,000).

Unemployment Rates by Race

Racial disparities in unemployment persist amid the labor market recovery. In November, the unemployment rate for White workers declined to 3.7%, while rates for Black and Hispanic workers were higher at 6.7% and 5.2%, respectively, though all groups saw improvements compared to previous months.

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