WASHINGTON — The U.S. November employment report was stronger than expected, with the only lingering effects of the federal government shutdown perhaps being a slowing in federal hiring.
November payrolls posted +203,000 and there were +8,000 net jobs revisions. The unemployment rate fell 0.25 point before rounding, to 7.0%.
The Bureau of Labor Statistics said the timing of the household survey that determines the unemployment rate was one week earlier than normal, covering the calendar week that included November 5th. It was moved due to the holidays, and gave additional time to process data and conduct surveys.
It is impossible to tell how much of the drop in the unemployment rate was due to the reopening of the government and thus a retracement from October's uptick, and whether any of the drop might have reflected the survey alteration, which has been usual practice since 2006 during some holidays.
Wages and hours jumped, suggesting rising incomes and production. Some manufacturing hours are at post-WW-II highs, suggesting that sector might have to hire ahead.
Payrolls composition was decent, with broad gains including perhaps some early hiring for the holidays in delivery services. And once again, a significant portion of the job gains were in 'lesser areas' like retail, food services, and delivery.
November payrolls included: manufacturing +27,000, construction +17,000, retail +22,300, transportation +20,500 (with gains in couriers, trucking, and warehousing), health +28,400, temporary help +16,400, restaurants +17,900, and government +7,000. Federal government jobs fell 7,000 as both the Post Office and other areas cut back.
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