According to Odaily, the United States experienced a significant surge in job growth in November, despite severe disruptions from hurricanes and strikes. However, this increase does not necessarily indicate a substantial shift in the labor market conditions. The employment situation is expected to continue its gradual slowdown, allowing the Federal Reserve to proceed with another interest rate cut this month.
The U.S. Department of Labor released its non-farm payroll report on Friday, revealing an increase of 227,000 jobs in November. This follows a revised increase of 36,000 jobs in October. The unemployment rate, which had remained steady at 4.1% for two consecutive months, rose to 4.2%. Meanwhile, average hourly earnings remained unchanged from the previous month at 0.4%.
As the economy continues to expand at a healthy pace, inflation remains above the central bank's 2% target. Additionally, the policy uncertainties surrounding the incoming administration of President-elect Trump add to the unclear outlook for further rate cuts in 2025. Traders are betting on two more rate cuts next year, with the likelihood of a third cut by the end of 2025 exceeding 50%.