SFS Insights: U.S. Job Creation on the Rise
- The U.S. economy added 227,000 jobs in November 2024, surpassing expectations and staging a robust rebound from the previous month. Notably, job gains for October were revised upward to 36,000 from 12,000, and September’s gains were adjusted to 255,000 from 223,000.
- While most indicators have returned to pre-pandemic levels (including the unemployment rate, which ticked up to 4.2%), wage growth remains an exception. Average hourly earnings increased by 4% year-over-year, which could support consumer purchasing power and confidence.
- The consumer price index (CPI) showed a 12-month inflation rate of 2.7% after increasing 0.3% on the month, the Bureau of Labor Statistics reported earlier this week. The annual rate was 0.1 percentage point higher than October.
- Excluding food and energy costs, the core CPI was at 3.3% on an annual basis and 0.3% monthly. The 12-month core reading was unchanged from a month ago.
- Despite the seemingly stubborn state of inflation, markets overwhelmingly expect the Federal Reserve to lower its key overnight borrowing rate next week.
