With only a few weeks left in 2019, many people are looking ahead to the New Year. This includes economists and analysts who are closely following the monthly Jobs Report.
The 2019 jobs market had its ups and downs, and experts are trying to determine what 2020 has in store for the U.S. economy.
But today, the Bureau of Labor Statistics released the November 2019 Jobs Report. Is 2019 ending on a high-note, or did the numbers miss expectations?
Job Growth Exceeds Estimates
In October, job growth exceeded expectations
, with 128,000 jobs being created compared to estimates of around 75,000.
November saw a similar result. 266,000 jobs were created
against estimates of around 180,000. Some of this growth was due to striking General Motors employees returning to work last month.
However, while analysts predicted a bump in job growth because of the strike ending, the higher than expected number is a very encouraging sign for the economy heading into 2020.
With only the December Jobs Report left in 2019, we will have to wait to see if job growth beats estimates one more time this year.
Unemployment Rate Lowers Once Again
Unemployment rate has been pretty steady throughout 2019. October saw this number increase to 3.6%, which was still a very positive number considering the General Motors strike.
In November, unemployment rate lowered once again to 3.5% which matches a 50-year low. Given the number of jobs that were created and the end of the return of GM workers, this result isn’t too surprising.
However, the number is still extremely encouraging as we head closer to the end of 2019.
Another indicator of unemployment which includes the underemployed and discourages workers also decreased in November to 6.9%.
Slight Increase in Year-Over-Year Wage Growth
One of the most closely watched metrics from the Jobs Report all year has been wage growth. Many expected this number to grow significantly as unemployment dropped and the job market grew more competitive
However, while it has grown, it hasn’t done so at the pace economists were expecting. What were the results in November?
Wage growth increased by 3.1%
from last year, which came in slightly higher than expectations. This is right around the average number for most of 2019.
As we move through next year, wage growth will continue to be closely monitored.
November Was a Strong Showing for the United States Economy
The results from November’s Jobs Report were a very encouraging sign for the U.S. economy as the New Year approaches. Will this trend continue into December and then 2020? We will have to wait a few weeks to find out.
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