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U.S. nonfarm payrolls rise more than expected in November

Published 12/08/2017, 08:35 AM
© Reuters.  U.S. nonfarm payrolls rise more than expected in November
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Investing.com - The U.S monthly employment report showed that the economy created more jobs than forecast in November, the unemployment rate remained unchanged and wage inflation rose less than expected, according to official data released on Friday.

Non-farm payrolls increased by 228,000 in November, following a 244,000 a month earlier that was revised down from the initial increase of 261,000. The data exceeded the consensus estimate for the creation of 200,000 jobs.

The jobless rate held at 4.1% last month, in line with expectations.

Average hourly earnings rose by 0.2% in November, below forecasts for a gain of 0.3% and following to the prior month's 0.1% slip.

The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation. Economists generally consider an increase of 3.0% or more to be consistent with rising inflation.

Additionally, the private sector created more new job contracts than expected in November with a total of 221,000, compared to consensus expectations for 190,000. October's figure was revised down to 2472,000 private nonfarm payrolls, from the prior reading of 252,000.

Government payrolls increased by 7,000 last month, after an decline of 3,000 in October and compared to expectations for a 5,000 gain.

The participation rate remained stable at 62.7% in November.

The U-6 unemployment rate, that includes workers who are working part-time for purely economic reasons, ticked up to 8.0% in November from 7.9% the previous month.

Furthermore, the average weekly hours rose to 34.5 in November from the prior month’s reading of 34.4. Analysts had expected no change.

After the release, the U.S. Dollar Index traded at 93.97, compared to 93.99 earlier. EUR/USD traded at 1.1744, from 1.1743 before the publication, USD/JPY traded at 113.45, from 113.47 earlier, and GBP/USD was at 1.3416, compared to 1.3403 previously.

U.S. futures pointed to a higher open on Wall Street. The blue-chip Dow futures gained 0.28%, S&P 500 futures rose 0.32% while the Nasdaq 100 futures traded up 0.61%.

Elsewhere, in the commodities market, gold futures traded at $1,246.50 a troy ounce, compared to $1,249.00 ahead of the data, while crude oil traded at $57.61 a barrel from $57.70 earlier.

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