Manufacturing and the overall U.S. economy added jobs in November, but concerns remain about the labor force participation rate, according to the U.S. Bureau of Labor Statistics.
What’s going on
Manufacturing added a net 22,000 seasonally adjusted jobs last month, all of it in durable goods. Overall, the U.S. added 227,000 jobs, beating economist expectations of 211,000, according to Investor’s Business Daily.
Employment in durable goods rose 26,000, while employment in nondurables declined by 4,000. Transportation equipment manufacturing accounted for almost all the gains.
“The unemployment rate edged higher to 4.2%, as expected. The jobless figure rose as the labor force participation rate edged lower and the labor force itself declined. A broader measure that includes discouraged workers and those holding part-time jobs for economic reasons edged higher to 7.8%” (NBC News).
Average hourly wages in manufacturing inched up in November, to a seasonally adjusted $28.30 from $28.18 in October. The average hourly pay for nonsupervisory employees on nonfarm, private-sector payrolls rose by a seasonally adjusted 9 cents, or 0.3%, to $30.57.
What it will mean
“The Fed won’t worry too much about a one-month drop in the labor force, but labor force participation will be key to watch in the months to come,” according to Investor’s Business Daily. “Fed Chairman Jerome Powell noted on Wednesday that the labor-force boost from immigration has substantially slowed in the second half of 2024.”
