US job growth exceeds expectations

US job growth surpasses expectations in November

The US labor market showed resilience in November, adding 237,000 jobs, far exceeding the revised 36,000 in October and surpassing market expectations of 200,000. Employment gains were broad-based, with notable increases in healthcare, leisure and hospitality, government, and social assistance sectors. However, retail trade saw a contraction in jobs. The unemployment rate ticked up slightly to 4.2%, as more individuals entered the labor force.

In wage growth, average hourly earnings rose 4% in November, matching the previous month’s increase and surpassing the 3.9% forecast. This increase signals continued wage pressure despite broader labor market trends.

Market expectations for a Federal Reserve rate cut in December climbed, with interest-rate swap traders assigning an 82% probability of a cut at the Fed’s December 18 meeting. The two-year Treasury yield dropped to 4.08%, after peaking at 4.17% earlier in the session, signaling investor anticipation of a more dovish stance from the central bank.

Healthcare remained a major contributor to job gains, adding 54,000 positions, while leisure and hospitality increased by 53,000 jobs. The public sector added 33,000 workers, further buoying the overall employment picture.

Canada’s jobless rate hits highest level Since 2021

Canada’s unemployment rate climbed to 6.8% in November, up from 6.5% in October and exceeding economists’ expectations of 6.6%. This marks the highest unemployment rate since September 2021 and aligns with growing concerns of a softening labor market, as voiced by the Bank of Canada in recent months.

On a positive note, Canada’s labor force participation rate rose to 65.1%, up by 0.3 percentage points from October, reflecting the highest level in three months. Despite this, the jobless rate suggests that economic uncertainties are beginning to impact the labor market, underscoring the challenges facing the Canadian economy in the coming months.