In November, US businesses were hiring briskly despite rising inflation and a weak economy. The economy added 263,000 jobs last month, and the unemployment rate dropped to 3.7%, which is close to a 53-year low, according to Labor Department figures released on Friday. In comparison to October, when 284,000 jobs were added, November’s employment growth was a little less.
The US labour market has consistently added thousands of jobs each month, even though borrowing costs have increased and inflation has skyrocketed. The average hourly wage increased by 5.1% between November and the corresponding month in 2017.
Inflation was rising too quickly, according to Fed Chair Jerome Powell, for the government to instantly cut down on employment and wages. The Fed raised its benchmark rate from nearly zero in March to approximately four percent in order to drive inflation back toward its two percent annual target. Consumer spending rose at a steady rate in October when inflation was taken into account, which has benefited US families from sustained hiring and rising salaries.
The US economy expanded at a quick rate of 2.9% annually in the most recent quarter after declining in the first half of the year. An increase in exports helped fuel GDP along with healthy consumer expenditure. Along with internet giants like Amazon, Meta, and Twitter announcing job cuts, smaller businesses like DoorDash, Redfin, Best Buy, and the Gap have also announced worker reductions. A measure of industrial activity dropped to a point in November that indicated the manufacturing sector may be contracting for the first time since May 2020.
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