During the month of November, U.S. employers added around 178,000 new jobs, diminishing the unemployment rate from 4.9 percent in October to 4.6 percent.
This unemployment rate is the lowest in nine years, and it marks the 74th consecutive month of job growth, reports the Bureau of Labor Statistics.
The job creation statistics represent a reality that exceeds economists’ estimates of the kind of growth that is required to keep pace with a growing population, according to the BBC.
Business services, professional jobs, and health care are the industries that are responsible for adding the greatest proportion of jobs.
Business and professional services added approximately 63,000 jobs in November, and health care added about 28,000 new jobs last month.
Despite the continued growth of the economy, some economists are not so optimistic about the significance of this trend.
”Honestly, until I get a couple more months of this [data], I’m going to consider this one an aberration,” said Bill Stone, chief investment strategist at PNC Asset Management Group.
”Not to discount it, but when you go back and look, you do have months when you see it move in the other direction. The trend is clearly higher,” Stone continued in an interview with Forbes.
While job figures improved from October, hourly earnings fell 0.1 percent, reducing the annual increase in wages from 2.8 percent to 2.4 percent.
Despite the wage decreases, economists remain optimistic that the Federal Reserve will raise it’s interest rates within the month of December.
Said Steve Rick, chief economist at the CUNA Mutual Group, ”because of this report and other metrics – record stock prices, record home prices, etc. – I think we actually could see the Fed increase the pace of the rate increases. A lot of people are guessing two hikes in 2017. I think they’ll for three.”
Indeed.com chief economist Jed Kolko went further to speculate on the implications of the latest BLS report: ”What this job report shows is how Obama’s legacy will be remembered. And what Trump’s baseline is for his own economic policies.”
”Trump is inheriting an economy with low unemployment and strong wage gains.”
Sources: Forbes, BLS, BBC/Photo Credit: The Balance