Your Economy (No Politics)

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US economy adds 228,000 jobs in November, as wages inch up

Unemployment held at a 17-year low last month amid unexpectedly strong job growth, although wage increases remain stubbornly weak, according to government data released Friday.

The economy added 228,000 jobs in November, the Bureau of Labor Statistics said Friday — blowing past economist estimates of 200,000 new jobs.

Professional and business services, manufacturing, and health care were the biggest contributors to job growth.

Unemployment remained unchanged from October, standing at 4.1 percent, the BLS said.

It is the lowest unemployment has been since the last weeks of the Clinton administration in December 2000.

Wall Street analysts said November’s report makes it likely that the Federal Open Market Committee will raise interest rates when it meets next week.

“While the [jobs] gains are not exactly bitcoinesque, they are more than sufficient to guarantee a 25 basis-point rate hike,” Joseph Bruseulas, economist at RSM, said Friday.

The Fed last raised rates by 25 basis points to a range of 1 percent to 1.25 percent in June.

But there were some areas of weakness in what was otherwise called a “strong report” by Jack Ablin, chief investment officer at BMO Private Bank.

Average hourly earnings grew only five cents to $26.55, the BLS said. Wage growth is up only 2.5 percent for the year, barely eclipsing the inflation rate, which stands at 2 percent.

“Wage growth was contained, suggesting there’s more opportunity to expand without inflation,” Ablin told The Post.

Others took an even more pessimistic take on stagnant wages.

“Wage growth is pretty awful yet again at a time in the cycle where we really should be seeing some momentum,” Luke Bartholomew, investment strategist at Aberdeen Standard Investments, said in a statement Friday.

Many have hoped that low unemployment would pressure employers to boost wages to attract workers.

“The big question going into the end of the year is exactly what needs to be done to stir some life in wage growth. Trump’s tax cuts will play into the debate but they won’t solve the riddle,” Bartholomew said.

The report of job gains and low unemployment rate gave a boost to Wall Street.

The Dow Jones and S&P 500 each hit record highs in Friday’s trading session. The Dow gained 117.68 points — bolstered by a 2 percent gain in Microsoft — and closed at 24,329.16

S&P popped 14.52 points, closing at 2,651.50. The tech-heavy Nasdaq gained 27.24 points to close at 6,840.08.

Meanwhile, the White House was quick to claim credit for the bright spots in November’s report.

“November was a great month for American workers as President Trump’s bold economic vision continues to pay off,” White House press secretary Sarah Huckabee Sanders said in a statement Friday.

https://nypost.com/2017/12/08/us-economy-adds-228000-jobs-in-november-as-wages-inch-up/?utm_source=maropost&utm_medium=email&utm_campaign=news_alert&utm_content=20171208&mpweb=755-5274309-719080549