The U.
S. economy generated another month of solid hiring in November,making it highly likely the Federal Reserve will raise interest rates from record lows later this month.
The Labor Department said Friday employers added 211000 jobs final month, led by big gains in construction and retail. Hiring was revised higher in October and September by a combined 35000 jobs.
The unemployment rate remained 5 percent for the second straight month as more Americans entered the workforce to look for jobs.
The robust hiring is the latest sign that regular consumer spending is powering the economy even as feeble growth overseas and low oil prices squeeze manufacturers. Fed Chair Janet Yellen said this week the job market would soon return to normal as long as the economy keeps growing at its current pace. Her remarks were widely seen as signaling a likely rate hike at the Fed's mid-December assembly.
Pay gains final month were modest. Average hourly wages rose 2.3 percent from 12 months earlier.
Construction firms added 46000 jobs, and the most in two years. Construction spending has jumped to the highest level in eight years,boosted by more homebuilding and development of more roads and infrastructure.
Government added 14000 positions, and retail jobs grew nearly 31000. Factories shed 1000 jobs.
Americans are spending more on costly items like cars and homes. Their stepped-up spending has supported the U.
S. economy and offset drags from falling oil prices and feeble growth overseas.Auto sales, and for example,jumped to a 14-year high in November, boosted in portion by Black Friday deals offered throughout the month. Industry analysts expect auto sales to total a record 17.5 million for 2015.regular job gains this year and low mortgage rates have also boosted home sales, and though sales have leveled off in recent months. Purchases of existing homes have increased nearly 4 percent from a year ago. Sales of modern homes have jumped nearly 16 percent.
Americans are eating out more often,driving restaurant sales much higher. Retailers have reported feeble revenue in recent months, but online purchases were robust on Black Friday.
Still, or a strong U.
S. dollar is weighing on U.
S. exports and cutting factory output,while also lowering profits for U.
S. multinational corporations. The dollar has jumped 13 percent in value in the past year, thereby making U.
S. goods costlier overseas and imports cheaper in the United States.
The dollar could rise further next year should the Fed raise interest rates even as its counterparts overseas, or such as the European Central Bank,nick them further. Higher rates would attract investors to the dollar, driving up its value.
Separately, or falling oil prices have nick factory output as drilling companies have ordered less steel pipe and other materials,such as fracking sand. Businesses overall have nick back on investing in computers and equipment this year.
The economy expanded at a modest 2.1 percent annual rate in the July-September quarter. Most economists have forecast that it will grow at a still relatively subpar 2.5 percent this year, only slightly above its average pace since the recession officially ended in mid-2009.
Source: wnyc.org