Hiring in the US jumped in November, extending a long-running streak of gains that has bolstered the world’s largest economy.
The report from the Labor Department showed employers added 227,000 jobs, led by healthcare firms, restaurants and bars.
It marked a strong rebound from October, when jobs growth dropped sharply amid disruption from major storms and labour strikes.
The figures emerged as analysts debate how much the US central bank will cut interest rates in the months ahead.
The Federal Reserve started reducing rates in September, saying lower borrowing costs were needed to keep the economy on track and stave off weakening in the labour market.
A month later, jobs growth flatlined, as strikes at Boeing and other firms as well as hurricanes put millions of workers off the payroll.
But the bounceback in growth in the latest report supports the view that the weakness was largely temporary. Hiring in October and September was also stronger than previously estimated, the Labor Department said.
Many analysts said they still expected a rate cut to be announced when Fed officials meet this month, noting a rise in the unemployment rate.
The jobless rate ticked up from 4.1% to 4.2%, returning to the highest level since August.
But in recent remarks, Federal Reserve chairman Jerome Powell has emphasised that bank officials did not feel a need to cut rates quickly.
“The economy has reached a point where it is growing healthily, with fairly full employment, and consistent wage growth – we are seeing very little evidence that there are issues needing to be addressed,” said Richard Flynn, managing director at Charles Schwab UK.
“Although it’s unclear what lies ahead, for now, the macroeconomic backdrop remains positive, and the market’s mood music appears to be suitably perky.”
Diane Swonk, chief economist at KPMG US, said the Fed needed to move carefully, given uncertainty about how plans by President-elect Donald Trump to cut taxes and raise tariffs might affect the economy.
Over the past 12 months, average hourly pay has also risen 4%, which some analysts said could set the stage for a resurgence in inflation.
“The Fed has already begun to warn they are going to slow down the cadence of cuts going forward because of how strong the economy has been,” she said.
“Given the resilience of the jobs market, I think that the issue is still how to win the battle against inflation.”
This article was originally published at www.bbc.com
