The U.S. Department of Labor released information on unemployment in the U.S. today. Analysts, according to a Reuters poll, had originally expected on average about 180,000 jobs to be created in November. They expected the unemployment rate to remain at October’s 3.9 percent.
But the real numbers were better in the end. The economy added about 199,000 new jobs in November and the unemployment rate fell to 3.7 percent from 3.9 percent in October.
The creation of new job opportunities accelerated in November compared to October, when around 150,000 jobs were created. Among other things, the end of strikes in the automobile industry and in the acting industry contributed to the creation of jobs in November.
Today’s data signal that the US labor market remains favorable despite high interest rates. This undermines expectations that the US central bank (Fed) could start cutting interest rates as early as the first quarter of next year.
Last March, the Fed began raising interest rates to bring inflation under control. Its prime rate has risen by more than five percentage points since then. The Fed last raised interest rates in July. The prime rate is now in a range of 5.25 to 5.50 percent, the highest level since 2001.