US continued to see a growth in the number of jobs in November despite the most aggressive interest rate hikes in decades.
Nonfarm payrolls climbed 263,000 last month, with an unemployment rate of 3.7 per cent, according to data from the Labour Department published on Friday.
November’s rise was a small decline from October’s revised 284,000 jobs, reports Xinhua news agency.
The increase in jobs is unlikely to curb the Federal Reserve’s aggressive rate hikes, which are intended to slow the hot economy and tamp down the worst inflation in 40 years.
Average wages per hour increased 0.6 per cent for November. That is double the estimate from economists surveyed by Dow Jones, and means the central bank is unlikely to ease rate hikes.
Earnings ticked up 5.1 per cent year-over-year basis and came in far higher than economists’ 4.6 per cent predictions.
Interest rate increases are wreaking havoc with the US stock market and are making it more difficult for potential buyers to purchase homes.
The Dow Jones Industrial Average dropped over 200 points after the jobs report was released, on fears that a hot job market could spur the Fed to take even more aggressive action.
“To have 263,000 jobs added even after policy rates have been raised by some 375 basis points is no joke,” Seema Shah, chief global strategist at Principal Asset Management, told CNBC.
“The labour market is hot, hot, hot, heaping pressure on the Fed to continue raising policy rates.”
The Fed must strike a delicate balance between slowing down inflation and avoiding triggering a recession.
Many economists agree, however, that the United States will see a recession next year, albeit a short-lived and mild one.