The U.S. economy added 263,000 jobs in November, beating economists’ expectations for 200,000 payrolls and keeping unemployment steady at 3.7%. The Bureau of Labor Statistics also reported that average hourly earnings rose 0.6% from the previous month, better than Wall Street’s expectation of a 0.3% increase.
The average hourly earnings for all employees on private nonfarm payrolls increased by 0.6% over the month, higher than the prior month and Wall Street expectations. On an annual basis, wages climbed at a higher-than-expected 5.1%.
Job growth was much better than expected in November with construction adding 20,000 positions and information up 19,000.
Job gains in real estate and rental and leasing (+13,000)
Something our Real Estate Division President, Kelly Brown, affirmed stating “The Real Estate Division’s efforts in implementing upskilling training specific to the trades will align well strategically with the continuing increase in demand for these roles among our client base. We anticipate demand to continue on upward trend as the pipeline of new construction in the multifamily industry continues to build due to continuing increase in rental demand across the nation.”
Employment in information rose by 19,000. Employment in the industry has increased by an average of 14,000 per month thus far this year, in line with the average of 16,000 per month in 2021.
Employment in professional and business services changed little in November (+6,000). Within the industry, professional and technical services added 28,000 jobs, while business support services lost 11,000 jobs.
“We continue to see strong demand to assist organizations in projects supporting ERP implementations, cloud migration and financial transformation,” emphasized Eric Peters, BGSF’s President of Professional Division. “The demand for talent to perform these services both on a project and full-time basis remains extremely high, thus driving up the wages to employee these individuals.”
The report also showed that wages rose at a faster-than-expected pace in November, with average hourly earnings increasing 0.6% from the month before and 5.1% year over year. Economists had been looking for those rates to slow from October, where they increased by a revised 0.5% month-on-month and 4.9% year-over-year.
The jobs report also contained significant revisions: September was revised down by 46,000 to 269,000 jobs, and October was revised up by 23,000 jobs to 284,000.
On Wednesday the latest Job Openings and Labor Turnover Survey (JOLTS) report from the Bureau of Labor Statistics revealed that job openings remain at high levels, even as the number of open positions fell during the month.
Considering those updates, November’s monthly gain — which remains considerably above pre-pandemic monthly averages — is now the lowest total jobs added since April 2021.