The job growth in the United States of America in November has been printed as the highest in the past 10 months, as per the report released at 13:30 GMT. With a major boost in hiring from the healthcare industry and General Motors’ putting its workers, formerly on strike, back on its payrolls, the U.S economy has given a strong signal that it is not under threat.
As per the Labor Department’s report, the unemployment rate in the U.S also dropped to 3.5% from 3.6% noted in October. The report further highlights steady gains in wages in November. The economic data released earlier today suggests that consumers are willing to continue the economic expansion to mark its longest run in history.
Non-Farm Employment Change Noted At 266K In November
The non-farm employment change was recorded at 156K in October. Experts were anticipating it to improve in November to 181K. Printing 266K, however, the report beat the analysts’ estimate by a significant margin. Following October’s 3.6%, analysts had expected the unemployment rate to hold steady in November. With a drop to 3.5%, the unemployment report further added to optimism for the U.S economy that helped the greenback push higher.
The upbeat U.S data validates the Fed’s decision of third rate-cut in October, following which, Chairman Jerome Powell had expressed that the monetary policy will now be put on halt for the next few meetings.
While the economy has retreated as per November’s data, that is likely to be echoed by the U.S policymakers in their next meeting set for December 10-11, experts continue to recommend caution for investors since the uncertainty regarding the U.S – China trade negotiations in the macroeconomic background, has not yet faded away.
Seven Cents (0.20%) Of Gain Recorded In Average Hourly Earnings In November
Average hourly earnings increased by 0.4% in October. Analysts were expecting another boost of 0.3% in November. Having missed the estimate and registering seven cents of gain (0.2%) in average hourly earnings, the increase, however, was cited as sufficient to support the U.S economic expansion, as per the economists.
Following the economic reports, the U.S dollar index was reported to have hiked from 97.40 to 97.75 where it is currently settling. Eur/Usd dropped sharply from above 1.1100 level back to a low of 1.1040. Gbp/Usd followed in its steps and declined from 1.3165 to around 1.3100 level earlier on Friday. Celebration in the currency pairs like Usd/Jpy and Usd/Cad was evident following the U.S economic data.