U.S. employment surged in November, with a long streak of gains supporting the world’s largest economy.
Employers added 227,000 jobs, mostly in health care facilities, restaurants and bars, according to a Labor Department report.
This marked a strong recovery from October, when employment growth fell sharply amid disruptions from major storms and labor strikes.
The figures came as analysts debate how much the U.S. central bank will cut interest rates in the coming months.
The Federal Reserve began cutting interest rates in September, saying lower borrowing costs were needed to get the economy back on track and prevent a slump in the labor market.
A month later, job growth leveled off as strikes and hurricanes at companies like Boeing removed millions of workers from the payroll.
However, the recovery in growth in the latest report supports the view that the downturn was mainly temporary. Employment in October and September was also better than expected, according to the Labor Department.
Many analysts pointed to rising unemployment and said they still expected a rate cut to be announced at this month’s Fed officials meeting.
The unemployment rate rose to 4.2% from 4.1%, returning to its highest level since August.
However, Federal Reserve Chairman Jerome Powell emphasized in recent remarks that bankers see no immediate need to cut rates.
Richard Flynn, managing director at Charles Schwab UK, said: “The economy has reached a stage of healthy growth with near full employment and consistent wage growth. There is little evidence that there are issues that need to be addressed. No,” he said.
“While it is unclear what will happen next, for now the macroeconomic backdrop remains favorable and the market mood music appears to be providing the appropriate encouragement.”
Diane Swonk, chief economist at KPMG US, said the Fed needs to tread carefully given the uncertainty about how President-elect Donald Trump’s tax cuts and tariff hike plans will affect the economy. .
Average hourly wages have also risen 4% over the past 12 months, which some analysts say could trigger a resurgence in inflation.
“The Fed has already begun warning that it will reduce the rate of interest rate cuts going forward because the economy is doing so well,” he said.
“Given the resilience of the job market, I think the question remains how to win the fight against inflation.”
