News Digest:

For the first time in the past few months, employers in the US hired more workers than expected in a month and also increased wages. The strong job growth numbers for November indicates a thawing of recession fears.

However, the US Labor Department’s report released early in December revealed non-farm payrolls grew by 263,000 while data for October was revised higher to show a rise of 284,000 instead of the previously reported 261,000. A monthly job growth of 100,000 is what is required to keep pace with the growing labor force.

Takeaway:

As for the Fed, its monetary policy path through the first half of 2023 will depend on labor market tightness. A matter of concern would be the decline in household employment for a second straight month, though the unemployment rate was unchanged at 3.7%.

End Notes

Source: https://www.reuters.com/markets/us/us-job-growth-beats-expectations-unemployment-rate-steady-37-2022-12-02/