The November employment situation was significantly stronger than expected. Payroll jobs jumped 321,000 after gaining 243,000 in October. Analysts expected a 230,000 rise and the November boost topped the high forecast for 275,000. September and October gains were revised up notably by a net 44,000. The unemployment rate held steady at 5.8 percent. Expectations were for 5.8 percent. Wages rose sharply in the latest month.
- Going back to the payroll report, private payrolls advanced 314,000 after increasing 236,000 in October. Analysts projected 225,000.
- Goods-producing jobs gained 48,000 in November after a 28,000 advance the month before. Manufacturing employment increased 28,000 in November, following a boost of 20,000 in October. Motor vehicles and parts rose 11,000, after increasing 5,000 the month before. Construction jumped 20,000 after a gain of 7,000 in October. Mining slipped 1,000 in November, following no change the prior month.
- Private service-providing jobs jumped 266,000 after a 208,000 increase in October. Strength again was in professional & business services and retail trade.
- Average hourly earnings jumped 0.4 percent in November after edging up 0.1 percent the month before. Expectations were for a 0.2 percent rise. Average weekly hours edged up to 34.6 hours from 34.5 hours in October. Analysts expected 34.6 hours.
- The November employment report clearly shows an improving economy. This suggests improving profits but also likely will raise chatter of the Fed moving forward the first increase in policy rates.
- Jobs openings increased in October to 4.834 million from 4.685 million in September.
- The number of job openings (yellow) are up 21% year-over-year compared to October 2013.
- Quits are up 12% year-over-year. These are voluntary separations. (see light blue columns at bottom of graph for trend for “quits”).
This is a very positive report. It is a good sign that job openings are over 4 million for the ninth consecutive month (almost to 5 million), and that quits are increasing year-over-year.