JOLTSOct2014The 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.