A “Help Wanted” sign hangs in a restaurant window in Medford, Massachusetts, Jan. 25, 2023.
Brian Snyder | Reuters
Nonfarm payrolls grew slightly more than expected in November, the Bureau of Labor Statistics reported Tuesday in numbers delayed by the government shutdown.
Job growth totaled 64,000 for the month, better than the Dow Jones estimate for 45,000.
The unemployment rate rose to 4.6%, more than expected.
In addition to the November report, the BLS released an abbreviated October count that showed payrolls down 105,000. While there was no official estimate, Wall Street economists were largely expecting a decline following a surprise increase of 108,000 in September.
The October slump came from a steep fall in government employment as deferred layoffs institute earlier this year took effect. Government payrolls were off 162,000 for the month, and fell declined an additional 6,000 in November.
Nevertheless, the October decline marked the third time in six months that payrolls saw a net negative level. The BLS report also showed that August’s numbers were revised down 22,000 to show a steeper loss of 26,000, while September’s initial count was pushed lower by 11,000.
The BLS had cautioned that the household survey, which is used to calculate the unemployment rate, will be impacted for several months by impacts from the shutdown. Challenges in capturing the October numbers led to the cancellation of both the jobs report and the closely watched consumer price index as well.
Despite the complications, the report painted a familiar picture of the labor market.
The jobs picture continues to be one of low hiring and low firing, impacted as well by stringent border practices under President Donald Trump that have drained the workforce of the usual influx of immigrants.
From a policy perspective, the Federal Reserve has had to work a difficult line between trying to head off further weakness in the labor market while also guarding against making stubbornly high inflation worse.
At its most recent meeting, the central bank lowered its key interest rate by a quarter percentage point but signaled that the bar is higher for additional cuts. The Fed has approved three consecutive reductions since September, taking its benchmark funds rate down to a target range of 3.5%-3.75%.
Fed officials have maintained that the labor market is not a source of inflation, and Tuesday’s jobs report backed up that assertion.
Average hourly earnings rose just 0.1% for the month, below the estimate for 0.3%, and were up 3.5% from a year ago, the smallest annual gain since May 2021.
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