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Non-farm payrolls surprise to the downside in November

By Iain Gilbert

Date: Friday 03 Dec 2021

Non-farm payrolls surprise to the downside in November

(Sharecast News) - The US economy added less jobs than expected throughout November, indicating that hiring had already started to slow before the emergence of the Covid-19 omicron variant.
According to the Labor Department, non-farm payrolls increased just 210,000 month-on-month, well and truly short of estimates for a print of 573,000.

However, the unemployment rate fell sharply to 4.2% from 4.6% and the labour force participation rate increased to 61.8% last month, its highest level since March 2020.

The leisure and hospitality industry posted a gain of 23,000 after being one of the leading job creators for much of the economy's recovery, while the professional and business services sector added 90,000 roles, transportation and warehousing added 50,000 and construction added 31,000.

The retail sector, on the other hand, saw a decline of 20,000 despite the impending holiday shopping season.

IX Prime managing director Jay Mawji said: "Rarely has a headline number been so misleading. Sure, the 210,000 new jobs created in November was a big miss. But clear-eyed market-watchers are viewing it as a distraction rather than a disappointment.

"Dig deeper into the numbers and this jobs report reveals a robust labour market. The unemployment rate has fallen sharply; at 4.2% it's back to benign territory, and within touching distance of the Federal Reserve's target.

"The fact is 1.1m more Americans are in work now compared to three months ago, and the world's biggest economy continues to generate jobs and growth that is rippling out around the world."

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