Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
November jobs report: What to know this week
Friday's news today
Yahoo! Finance
November jobs report: What to know this week
Emily McCormick · Reporter
Sun, November 28, 2021, 9:44 AM · 6 min read
As investors return from the Thanksgiving-shortened trading week, focus will shift to the U.S. labor market.
The Labor Department's monthly jobs report due for release on Friday is set to provide an updated snapshot of the strength in hiring and labor force participation in the U.S. economy. Consensus economists are looking for a half-million jobs to have returned in November, with the pace of hiring slowing only slightly from October's 531,000 gain. The unemployment rate is also expected to improve further to 4.5% from October's 4.6%, reaching the lowest level since March 2020.
"We expect non-farm payrolls to have risen by 500,000 in November, but the growing risk of a winter COVID wave and a dwindling supply of available workers will weigh on jobs growth soon," wrote Paul Ashworth, chief North America economist for Capital Economics, in a note last week.
"Employment growth can’t continue at this pace for much longer unless the labor force stages a more notable recovery. If anything, labor supply could worsen over the coming months as the federal vaccine mandate covering 100 [million] workers begins on January 4," Ashworth added. "That suggests wage growth will remain strong, and we expect a 0.4% [month-over-month] rise in average hourly earnings in October."
On a year-over-year basis, average hourly earnings are expected to rise by 5.0%, accelerating even further after October's already marked 4.9% rise and representing the fastest wage growth rate since February.
Growing average wages and a tight labor market — while a positive for consumers and their ability to spend — has also stoked concerns over persistent inflation. Last week's Personal Consumption Expenditures (PCE) deflator from the Bureau of Economic Analysis for October showed an annual jump of 5.0% in the index, or the biggest rise since 1990. And the core PCE, or the Fed's preferred inflation gauge stripping out volatile food and energy prices, rose by 4.1% year-over-year — the most in three decades.
{snip}
November jobs report: What to know this week
Emily McCormick · Reporter
Sun, November 28, 2021, 9:44 AM · 6 min read
As investors return from the Thanksgiving-shortened trading week, focus will shift to the U.S. labor market.
The Labor Department's monthly jobs report due for release on Friday is set to provide an updated snapshot of the strength in hiring and labor force participation in the U.S. economy. Consensus economists are looking for a half-million jobs to have returned in November, with the pace of hiring slowing only slightly from October's 531,000 gain. The unemployment rate is also expected to improve further to 4.5% from October's 4.6%, reaching the lowest level since March 2020.
"We expect non-farm payrolls to have risen by 500,000 in November, but the growing risk of a winter COVID wave and a dwindling supply of available workers will weigh on jobs growth soon," wrote Paul Ashworth, chief North America economist for Capital Economics, in a note last week.
"Employment growth can’t continue at this pace for much longer unless the labor force stages a more notable recovery. If anything, labor supply could worsen over the coming months as the federal vaccine mandate covering 100 [million] workers begins on January 4," Ashworth added. "That suggests wage growth will remain strong, and we expect a 0.4% [month-over-month] rise in average hourly earnings in October."
On a year-over-year basis, average hourly earnings are expected to rise by 5.0%, accelerating even further after October's already marked 4.9% rise and representing the fastest wage growth rate since February.
Growing average wages and a tight labor market — while a positive for consumers and their ability to spend — has also stoked concerns over persistent inflation. Last week's Personal Consumption Expenditures (PCE) deflator from the Bureau of Economic Analysis for October showed an annual jump of 5.0% in the index, or the biggest rise since 1990. And the core PCE, or the Fed's preferred inflation gauge stripping out volatile food and energy prices, rose by 4.1% year-over-year — the most in three decades.
{snip}