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The US unemployment rate in November fell to its lowest level since August 2007 as the economy continued to add new jobs, all but guaranteeing an interest rate hike this month.
The jobless rate fell a unusually large three-tenths to a surprising 4.6 per cent, the Labor Department reported today.
A solid 178,000 net new positions were created, in line with analysts' expectations. The economy has added jobs at an average rate of 180,000 a month so far this year, a healthy pace but below the 229,000 rate in 2015.
The big drop in the unemployment rate was a shock as it had moved little over the prior year. The number of people in the workforce -- the labor force participation rate -- was also little changed at 62.7 per cent.
Private firms added 156,000 in the latest month, with continued gains in construction, healthcare and leisure.
However manufacturing firms lost jobs again in November, for a drop of 15,000 over the past three months, and retail fell slighty, unusual at a time when stores are adding seasonal workers for to deal with holiday shopping.
The share of long-term unemployed, or those seeking work for 27 weeks or more, was stable at 1.9 million, or 24.8 per cent of the all unemployed people.
Temporary work also increased again, and has added over 55,000 jobs in the past three months, but could be a sign companies are having trouble filling positions.
The latest picture of the US economy's health comes President-elect Donald Trump touts his efforts to prevent job losses in the manufacturing sector by striking deals to reduce the off-shoring of jobs and warning companies considering relocating abroad of "consequences."
Trump will assume office with unemployment at pre-recession levels that may be difficult to sustain.
In a statement, the White House economist Jason Furman hailed the creation of 15.6 million positions since 2010 and the longest streak of continuous job gains on record.
He also noted that the number of unemployed workers per job opening stood at 1.4, near its lowest pre-recession level.
The 4.5 per cent unemployment rate is well below what monetary policymakers generally consider "full employment," which has created concerns that inflation is imminent, though there have been only modest signs of price pressures.
In another sign that inflation is tame, average hourly earnings declined 0.1 per cent, or three cents, to USD 25.89, the first drop in wages since December 2014. October had seen a gain of 11 cents. Wages are nevertheless up 2.5 per cent over the last 12 months, outpacing inflation.
US monetary policymakers have repeatedly signalled that they are likely to increase the benchmark rate at the final meeting of the year December 13-14.
Committee members had earlier been divided however on the danger posed by inflation and the timing of the next rate hike.
The Federal Open Market Committee refrained from enacting an expected course of rate hikes in 2016 for fear of interrupting a fragile recovery and in the absence of wage and price pressures.
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