Nfp November Report Shows Positive Surprise

 Nfp November Report Shows Positive Surprise

NFP's November Report Shows 199K New Jobs Added To US Economy

According to the NFP report for November, around 199,000 new jobs were added to the US economy. Overall, the number of jobs generated in the USA during November was higher than the market forecasts.

According to reports, the NFP report for November shows that the US labor market is still very robust. That's why it will also be a factor that the Fed officials will use for upcoming interest rate decisions.

199,000 New Jobs With A 7.7% Unemployment Rate

In October, around 150K jobs were added to the US economy, which increased to 199K during November, according to BLS data. According to economists, around 180K jobs were expected from the NFP report, but the actual number turned out to be higher.

Analysts believe that the strong jobs data during November was due to the higher number of job openings in the government and healthcare sectors. In addition, the strike in the US automobile sector also ended, which is leading to more jobs in the manufacturing sector.

Just like the NFP report showed an upside surprise, an increase was also seen in the average hourly earnings. The average hourly earnings in the US increased by 0.4% against an earlier reading of around 0.2%. The market players were forecasting the number to increase by 0.3%.

Similarly, the unemployment rate in the US also turned lower to around 3.7%, which shows that the labor market remains strong.

Many experts believe that the recent NFP report will strengthen the narrative that the recent policy-tightening measures by the Fed are still not enough to cool down the labor market.

It looks like even a higher interest rate (5.25% - 5.50%) appears to be not high enough to slow down the US labor market. A large number of new jobs is also giving rise to an increase in average hourly earnings. In turn, this is leading to a situation of sticky inflation in the USA.

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