U.S. Economy Added 266,000 Jobs in November; Unemployment Rate Edged Down to 3.5%
December 06 2019 - 9:00AM
Dow Jones News
By Sarah Chaney and Amara Omeokwe
WASHINGTON-Employers added 266,000 jobs in November and
unemployment matched a 50-year low of 3.5%, signs the U.S. economy
is withstanding a global slowdown.
Wages advanced 3.1% from a year earlier, an improvement from the
prior month's pace.
U.S. employers have picked up the pace of hiring. Jobs have
grown an average 205,000 per month in the three months through
November. That compares with average monthly job growth of 223,000
in 2018.
Hiring was strong in health care, restaurants and transportation
jobs. In November, manufacturers added 54,000 jobs, 41,000 of which
were in auto manufacturing. General Motors workers, who were on
strike in October, helped drive the bounceback.
The stronger pace of hiring could help juice up the broader U.S.
economy, which is still expanding but at a slower pace than last
year.
Economists surveyed by The Wall Street Journal had forecast a
gain of 187,000 new jobs in November, a 3.6% unemployment rate and
3% annual wage growth. Payrolls for October and September were
revised up by 41,000.
The Federal Reserve has cut interest rates three times this year
on worries that weakness in trade, business investment and
manufacturing could derail economic growth by triggering cutbacks
in spending and hiring. The central bank, which meets next week to
discuss interest rates, has signaled it was done cutting rates
unless it sees a significant slowdown in economic activity.
Gross domestic product, a broad measure of goods and services
across the economy, increased at a 2.1% annual rate in the third
quarter, down from a 2.9% rate for 2018 as a whole. Meanwhile, U.S.
manufacturing activity has cooled, a reflection of trade-war
uncertainty and a global manufacturing slowdown.
Overall, though, the economy has continued to grow, and many
employers report steady or growing demand for workers.
Still, historically low unemployment has not translated into an
acceleration in wage growth. Average hourly earning increased seven
cents last month to $28.29. Wages were up 3.1% from a year earlier,
down from a recent peak of 3.4% in February. The gains well outpace
inflation, but are modest relative to other periods with
historically low unemployment.
There are various reasons why wages might not be growing faster,
including lackluster productivity growth and the retirement of
highly paid baby boomers.
The share of Americans working or seeking work eased in
November. The so-called labor force participation rate declined to
63.2% in November after reaching a six-year high in October.
A larger pool of available workers could help fill employers'
demand for workers at a time of low unemployment.
Mosquito Joe, a pest-control franchise based out of Virginia
Beach, Va., was flooded with new orders for its services this
summer. Bulking up with office managers and new employees to spray
pesticides in yards proved more challenging than years past, said
Lou Schager, president of Mosquito Joe.
"We're having more candidates applying, and then not showing up
for the interview," Mr. Schager said. "They think they can be more
selective."
To make sure that staff will return during the busier summer
months, some Mosquito Joe locations are keeping workers on through
the winter, even if it is just a few days a month to maintain
equipment or connect with customers. Franchisees have raised wages
by at least 3% and offered bonuses to workers, Mr. Schager
said.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
December 06, 2019 08:45 ET (13:45 GMT)
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