Nov. Non-Farm Payrolls Rise 178,000; Jobless Rate 4.6%

WASHINGTON – The U.S. unemployment rate fell to a nine-year low of 4.6% in November as the economy added 178,000 jobs, likely good enough to satisfy the Federal Reserve as it prepares for an interest-rate hike this month. But an unexpected decline in average hourly earnings and the workforce participation rate cast a shadow over the report from the Bureau of Labor Statistics Friday. 

The unemployment rate matched a low recorded in August 2007 and is the lowest since May 2007, when it was 4.4%. It has hovered between 4.9% and 5.0% for much of the past year.

The number of unemployed people fell by 387,000 to 7.4 million, while at the same time 226,000 people dropped out of the labor force and 160,000 people became employed. Most of those who were no longer unemployed were men, BLS said.

The previous two months saw a net revision of -2,000. October's 161,000 payroll gain was revised down to 142,000 while September's 191,000 was finalized at 208,000.

The three-month average for payrolls remained at 176,000, slightly below the 180,000 average gain for year-to-date 2016, and down from the average gain of 229,000 per month in 2015.

The labor force participation rate slipped a tenth further to 62.7% in November, but the number of persons who were marginally attached to the labor force -- those who were not in the labor force but wanted a job -- rose by 215,000 from a year earlier.

Average hourly earnings fell 3 cents to $25.89 in November, reversing October's 0.4% gain. The last time earnings fell were in December 2015. Earnings rose 2.5% year-over-year in November.

The average workweek held at 34.4 hours.

Employment in health care and professional and business services continued to trend up. Health care employment rose by 28,000 and professional and business services by 63,000.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
MORE FROM BOND BUYER