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US hiring surged in November, continuing a long-standing trend of growth that has supported the world’s largest economy. The Labor Department’s report revealed that employers added 227,000 jobs, with healthcare, restaurants, and bars leading the way.
This marked a strong recovery from October, when job growth slowed significantly due to disruptions from major storms and labor strikes. The new data comes as analysts debate how much the US Federal Reserve will cut interest rates in the coming months.
The Federal Reserve began lowering rates in September, citing the need for lower bo
rrowing costs to keep the economy stable and prevent a slowdown in the labor market. Job growth faltered in October, with strikes and hurricanes causing millions to miss work, but the November rebound suggests that the previous weakness was likely temporary. The Labor Department also revised job growth for September and October, showing stronger-than-expected numbers.
Many analysts still anticipate a rate cut in the upcoming Federal Reserve meeting, despite the slight uptick in the unemployment rate from 4.1% to 4.2%, its highest level since August.
However, Federal Reserve Chairman Jerome Powell recently noted that officials don’t feel an urgent need to cut rates immediately. "The economy is growing healthily, with fairly full employment and steady wage growth," said Richard Flynn, managing director at Charles Schwab UK. "We see very little evidence that immediate action is necessary."
Diane Swonk, chief economist at KPMG US, cautioned that the Fed must proceed cautiously due to uncertainties surrounding President-elect Donald Trump's tax and tariff plans, which could impact the economy.
Over the past year, average hourly pay has risen by 4%, which some analysts see as a potential trigger for renewed inflation. Swonk noted that the Fed has already signaled a slowdown in rate cuts due to the economy’s strength. "The focus remains on how to manage inflation, given the resilience of the job market," she said.
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