In spite of rising inflation and a weak economy, US businesses hired consistently in November. The Labor Department said on Friday that the economy added 263,000 jobs and the unemployment rate was 3.7%, which is almost a 53-year low. Compared to the 284,000 jobs added in October, fewer positions were added in November. Thousands of jobs have been routinely added to the US labor market each month, despite rising borrowing rates and skyrocketing inflation. November’s average hourly wage grew by 5.1% when compared to the same month in 2017.
Jerome Powell, the chair of the Fed, claimed that the inflation rate was rising too quickly for the central bank to immediately cut back on employment and wages. The Fed raised its benchmark rate from around zero in March to about 4% in order to push inflation back toward its 2% annual target. After adjusting for inflation, consumer spending rose at a solid rate in October, which helped US families due to consistent hiring and rising wages.
After declining in the first half of the year, the US economy grew at a quick pace of 2.9% annually
After declining in the first half of the year, the US economy grew at a quick pace of 2.9% annually in the most recent quarter. An increase in exports as well as strong consumer spending helped drive growth.
Small businesses like DoorDash, Redfin, Best Buy, and the Gap have also announced staff reductions in addition to tech giants like Amazon, Meta, and Twitter. The manufacturing sector may be contracting for the first time since May 2020, according to a measure of industrial activity that fell to a critical level in November.