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The resilient labor market shows healthy job growth, lower unemployment and some wage growth. In November, the labor market added 199,000 jobs, higher than the Dow Jones estimate and ahead of October gains. The unemployment rate unexpectedly fell in November to 3.7% as the labor force participation rate increased to 62.8%. Average hourly earnings rose by 0.4%, up 4% from a year ago.

The labor market added 150,000 jobs in October, below the 170,000 estimate and well below the 12-month average of 258,000 jobs added. In addition, the unemployment rate ticked up to 3.9%. It is still historically low but the highest since January 2022. The market is still showing solid jobs growth, but the October report clarifies that the market is cooling.

The labor market added 336,000 jobs in September, almost DOUBLE predictions - making it the most significant job growth month since January 2023. The labor market remains resilient, with the strong pace of hiring keeping the unemployment rate from rising.

The labor market still looks strong and not recessionary but continues to cool. The unemployment rate increased as hundreds of thousands of new and previously discouraged workers joined the labor market seeking new employment opportunities. The pressure to raise wages diminished in August due to increased job seekers and decreased open jobs. Supply and demand appear more balanced as the pandemic’s hardest-hit sectors continue to make gains and we approach full employment.