Unemployment Fell to 4.6% in November - Workology

Unemployment Fell to 4.6% in November Unemployment Fell to 4.6% in November The November jobs report is here and the news is good: the US economy added 178,000 nonfarm payroll jobs in November and the unemployment rate has dipped to 4.6%, its lowest  rate since August 2007. Septembers job gains were revised to  208,000 and Octobers to  142,000. This steady growth means that its likely that when the Fed meets later this month they will raise interest rates. Unemployment Fell to 4.6% in November But for a few aberrant months, slow and and steady growth has been the story of this last stages of economic recovery. Seasonal hiring has been in line with historical trends, dipping in spring and late summer but increasing in early summer and winter. And while overall job growth has been slowing, thats in line with many economists predictions, who have argued  that the US is approaching full employment theres just not as much slack in the job market, and only so much room to grow. I think its worth looking again at BLS growth charts, tracking growth and unemployment from 2014 to 2016. Job growth from November 2014 to November 2016 via BLS. Unemployment rate from November 2014 to November 2016. There was little movement in the numbers of long term unemployed, marginally attached, and underemployed, or in the labour participation rate, as has been the case for much of 2016. To no ones surprise, the big growth areas were business services, health care and construction. Tech, which was often a big growth sector in the early months of 2016, did not add significant numbers of jobs in November. And while manufacturing and energy continue to decline, their losses were small too. Professional and Business Services: +  63,000 Health Care: +  28,000 (+12,000 in Ambulatory Health Care Services) Construction: +19,000 (+15,000 Residential Specialty Trade Contractors) WSJs chart-based explainer on the report is, as always, valuable. They dig out some of the most important data and visualize it. So what does Novembers jobs report mean? I dont think it changes the story of 2016 much this latest jobs report is very much in line with whats come before. Its likely that the Fed will raise rates later this month. Its like likely that business and professional services and health care will continue to grow, going into the new year, and construction will only slow if home buying does too. As for the political  angle, the impact of the presidential election and potential regulatory changes wont hit for months to come.