US economy adds more jobs than expected in November

According to data released on Friday by the Bureau of Labour Statistics, Non-farm payrolls rose by 199,000 following an unrevised 150,000 jump in October. Analysts were expecting a 180,000 increase.

In November, the unemployment rate decreased slightly from 3.9% in October to 3.7%, defying predictions that it would stay the same.

Average hourly earnings rose 0.4% for the month and 4% on the year. The monthly jump was ahead of expectations of 0.3%, but the yearly rate was in line.

The figures showed that job gains occurred in healthcare and government. Employment also rose in manufacturing, reflecting the return of workers from a strike. Employment in retail trade declined.

Payroll gains were inflated by returning strikers in November, but the underlying pace of job growth has slowed in recent months.

This is good news for the Fed, which has probably decided against raising rates any further. But we felt that the remaining details in the report were strong enough to rule out rate cuts for a few more months.