Despite the Fed’s aggressive efforts to slow the labor market and address inflation, November’s job growth rate was much better than expected.
Nonfarm payrolls increased by 263,000 while the unemployment rate was 3.7%, the Labor Department reported Friday. Economists surveyed by Dow Jones projected a 200,000 increase in payrolls and a 3.7% increase in the unemployment rate.
Monthly profit was down slightly from the October upward revision of 284,000.
That figure will do little to slow the Fed, which has been steadily raising rates this year to keep inflation still near its highest level in more than 40 years.
In another blow to the Fed’s anti-inflation efforts, average hourly earnings rose 0.6%, doubling the Dow Jones estimate. Salaries increased 5.1% year-over-year, well above expectations of 4.6%.