Jens Asbjørn Bøgen
The job creation bounced back, although they are likely to be heavily revised.
The first U.S. job report since the reopening of the government shows an increase in unemployment, now at 4.6%.
This is .2% up from the last numbers released (September) and marks a four-year high, according to Financial Times.
On the plus side, the job growth bounced back after being 100,000+ down in October, with 64,000 new nonfarm jobs being created, Reuters reports.
However, last week Fed chair Jay Powell said that job numbers were probably being overestimated by up to 60,000 a month, FT reports.
Data gaps and revisions
The Bureau of Laber Statistics (BLS) adjusted the weighting of labor force estimates to account for missing October data.
Ahead of the release, the agency cautioned that November figures could be less precise than usual, saying labor force estimates “will have slightly higher variances than usual.”
It added that the change in methodology “will not be needed for the December estimates,” which are expected to return to standard practices.
The agency also noted that an unusually large number of new and returning households participated in November’s survey, a factor some economists warned could push the unemployment rate higher.
Growing downside risks
Household views of the labor market worsened in November, economists said, as employers pulled back on hiring.
According to Reuters, analysts have linked the slowdown to higher import costs stemming from President Donald Trump’s sweeping tariffs, which have weighed on consumer spending, particularly among lower- and middle-income households.
Final benchmark revisions are due in February alongside January’s employment report.
Sources: Reuters, Bureau of Labor Statistics, Financial Times
