US hiring remains robust in November; adds 263,000 new jobs despite soaring inflation
In spite of rising prices and a weak economy, US businesses hired consistently in November.
The Labor Department said on Friday that the economy added 263,000 jobs and the unemployment rate was 3.7 per cent, which is almost a 53-year low. Compared to the 284,000 jobs added in October, fewer positions were added in November. Thousands of jobs have been routinely added to the US labour market each month, despite rising borrowing rates and skyrocketing inflation. November's average hourly wage increased by 5.1 per cent when compared to the same month in 2017.
Despite high inflation and a sluggish economy, US firms continued to hire steadily in the month of November.
According to data released by the Labor Department on Friday, the economy added 263,000 jobs as the unemployment rate stood at 3.7 per cent, which is close to a 53-year low. The number of employment added in November was somewhat lower than the 284,000 jobs added in October. Even though borrowing costs have increased and inflation has skyrocketed, the US labour market has consistently added thousands of jobs each month. Comparing November to the same month last year, the average hourly salary increased by 5.1 per cent.
As per Fed Chair Jerome Powell, inflation was soaring too rapidly for the central bank to immediately reduce employment and wages. To force inflation back toward its 2 per cent annual objective, the Fed increased its benchmark rate from close to zero in March to about four per cent. US families have benefited from consistent hiring and growing wages as consumer spending increased at a solid rate in October after accounting for inflation.
The US economy increased at a swift 2.9 per cent annual pace in the most recent quarter after contracting in the first half of the year. Along with consumer spending strength, a surge in exports also contributed to growth.
Along with tech powerhouses like Amazon, Meta, and Twitter announcing job layoffs, small organisations like DoorDash, Redfin, Best Buy, and the Gap have also said they will lay off staff.
A gauge of industrial activity fell to a level in November that showed the manufacturing sector may be declining for the first time since May 2020.
(With inputs from agencies)
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