An employee at Home Depot (NYSE:HD) beyond a now hiring sign at a satellite location. (Photo: Reuters)
The Labor Department said Friday nonfarm payrolls increased by 178,000 jobs and the unemployment rate fell to a more than nine-year low of 4.6%. However, in September and October, the previous jobs reports were revised to show 2,000 fewer jobs created than previously reported.
In November, economists polled by Reuters had forecast payrolls would increase by 175,000 jobs and the unemployment rate unchanged at 4.9%.
Wages pulled back after two months of gains, as average hourly earnings fell three cents, or 0.1%, after gaining 0.4% in October. The economy has largely created part-time and lower-wage service-sector jobs. Manufacturing fell by 4,000 jobs in November, marking the fourth straight month of declines. Construction employment increased by 19,000 jobs last month after rising by 14,000 in October.
Retail sector payrolls fell 8,300, falling for a second straight month.
Further, while the Bureau of Labor Statistics (BLS) claims the labor market is nearing full employment, job gains have slowed from an average of 229,000 per month in 2015 to an average of 180,000 this year.
The U.S. economy needs to create an average of 250,000 jobs each month simply to keep pace with population growth.
The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, ,fell 0.1% to 62.7% last month. That’s just off a 4-decade low and only in part reflects an aging and retiring workforce.
