U.S. employers added 227,000 workers in November, pushing the unemployment rate to 4.2%, the Labor Department said Friday.
Economists had expected 215,000 jobs after the Labor Department reported a much lower-than-expected increase of just 12,000 jobs in October due to storms and strikes. They also expected the unemployment rate to rise by a tenth of a percentage point from 4.1%.
The October report revised the number upward by 24,000, bringing the estimate up to 36,000. The number of employees in September was revised upward by 32,000, from an increase of 223,000 to an increase of 255,000.
Private sector employment rose by 194,000 people, closer to the 200,000 expected. Retail jobs fell by 28,000, suggesting seasonal shopping employment is weaker than usual. Warehousing and transportation added just 3,400 jobs.
Employment in the leisure and hospitality industry increased by 53,000 people, higher than this year's average. The health sector added 54,000 jobs throughout the year. Government employment increased by 33,000 jobs, 20,000 of which were in state and local governments.
Manufacturing employment rose by 22,000, close to the 25,000 expected. Manufacturing employment decreased by 48,000 people last month.
Average hourly wages rose 0.4%, in line with last month's growth and exceeding expectations for a 0.3% increase. Compared to a year ago, profits increased by 4%. Average weekly working hours increased to 34.3 hours from 34.2 hours, which was revised downward in October.
Ahead of October's report, the labor market had shown notable strength this year, defying expectations that job growth would slow this year. The Fed began lowering interest rates in September, in part to stem the impending slowdown in the economy and labor market.
In October, the turnover rate increased as the number of job openings increased. However, hiring rates have declined and remain well below pre-pandemic levels. Economists disagree over whether relatively low employment rates indicate employers are reluctant to hire or simply that there are not enough workers.
