We’re Seeing a Strong Rise in the Economy
The month of November saw a pretty good rise in terms of job growth, fueling a strengthening economy.
According to Reuters, last month was an uplifting time for Americans as people returned to work after suffering hurricanes, pushing us into the fastest time of growth for the economy in three years:
Nonfarm payrolls rose by 228,000 jobs last month amid broad gains in hiring as the distortions from the recent hurricanes faded, Labor Department data showed on Friday. The government revised data for October to show the economy adding 244,000 jobs instead of the previously reported 261,000 positions.
Employment gains in October were boosted by the return to work of thousands of employees who had been temporarily dislocated by Hurricanes Harvey and Irma. November’s report was the first clean reading since the storms, which also impacted September’s employment data.
Average hourly earnings rose five cents or 0.2 percent in November after dipping 0.1 percent the prior month. That lifted the annual increase in wages to 2.5 percent from 2.3 percent in October. Workers also put in more hours last month.
The unemployment rate was unchanged at a 17-year low of 4.1 percent amid a rise in the labor force. Economists polled by Reuters had forecast payrolls rising by 200,000 jobs last month.
The economy grew a total of 3.3 percent, and the forecasts predict that the economy will maintain this pace of growth.
It should be noted that a large increase came from retail outlets which are gearing up for the Holiday season. There was also an upswing in construction employment due to the rebuilding efforts occurring in places where hurricanes hit.
The growth in employment was broad in November. Construction payrolls increased by 24,000 jobs, thanks in part to rebuilding efforts in the areas devastated by the hurricanes, after rising 10,000 in October.
Manufacturing scored another month of solid job gains, with payrolls increasing by 31,000 jobs after rising 23,000 in the prior month. Retail payrolls grew by 18,700 jobs last month, the largest gain since January, likely boosted by hiring for the holiday season.
Employment at department stores increased by 3,100 jobs last month. Retailers, including Macy’s Inc, (M.N) reported strong Black Friday sales. Macy’s said this month it would hire an additional 7,000 temporary workers for its stores to deal with heavy customer traffic in the run-up to Christmas.
Regardless of the reasoning, the improved economy is boosting the stock market and the value of the dollar, with the dollar seeing its fifth straight day of gains.