Jobless rate hits nine-year low
The U.S. economy added 178,000 jobs in November.
BY JEFF COX, CNBC
(CNBC) - The U.S. economy added 178,000 jobs in November — slightly higher than Wall Street expectations — and the unemployment rate fell to 4.6 percent, the lowest in nine years, the Labor Department said on Friday.
Wages put a damper on the gains, with the annualized pace of average hourly earnings gains slumping to 2.5 percent.
"This positive jobs report is another indication that the U.S. economy continues to pick up steam," said Tony Bedikian, managing director and head of global markets at Citizens Bank.
"We've seen a rally in equity markets, a stronger dollar and upward revisions to GDP as of late. The markets have priced in a Fed tightening later this month and I think today's report supports that view," he said.
The unemployment rate matched the lowest level since August 2007, thanks in some part to a decline in the labor force participation rate to its lowest level since June and still near 40-year lows. A broader measure of joblessness that accounts for the underemployed and discouraged workers also fell, declining from 9.5 percent in October to 9.3 percent in November, the lowest since April 2008.
However, the number of workers counted not in the labor force surged by 446,000 to 95.06 million.
Wall Street was watching the numbers closely as the first indication of jobs market strength since the Nov. 8 presidential election.
This also will be the last major employment indicator before the Federal Open Market Committee meets Dec. 13-14 to decide whether the economy has improved enough to resume a rate normalization cycle that started a year ago.
The market is assigning about a 93 percent chance that the Fed's monetary policy-making arm will approve a quarter-point hike to its overnight funds level, a key benchmark for other interest rates.