Written by 8:50 pm Wealth Building Views: [tptn_views]

Unemployment rate dips unexpectedly

The jobs figures were bolstered by the return of striking auto and film industry staff, and indicated that the economy continues to operate at a brisk clip despite Federal Reserve rate of interest hikes.

Health care saw a powerful jobs uptick in November, adding 77,000, while government (49,000), manufacturing (28,000), and leisure and hospitality (40,000) also posted big gains. Average hourly earnings were up by 0.4% compared with the previous month, and increased by 4% on a year-over-year basis.

Mortgage Bankers Association (MBA) senior vice chairman and chief economist Mike Fratantoni said that despite the higher-than-expected jobs figures, growth was concentrated in only a couple of sectors, “while employment is little modified or declining in other sectors.”

He said the yearly pace of wage growth was “likely too rapid” to be consistent with the Fed’s 2% inflation goal, and an indicator of a strong labor market.

“These trends… paint an image of a job market that remains to be strong, regardless that the variety of job openings has declined, and not less than some sectors are seeing a rise in layoffs,” Fratantoni said in a note after the discharge.

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