- The US economy created 210K jobs in November, below the expected 550K.
- The dollar weakened in a knee-jerk reaction to the data.
Non-farm wages (NFP) rose 210K in November compared to the median forecast of a 550K increase, according to data released Friday by the US Bureau of Labor Statistics. This marked a substantial drop from the 546,000 jobs added to the US economy in October.
The unemployment rate fell significantly more than expected to 4.2% from 4.6% in October, against expectations for a drop to 4.5%. Meanwhile, the MoM gain in average hourly earnings stood at 0.3%, below expectations for it to hold at October’s 0.4% MoM level. That means the year-over-year average hourly wage growth rate remained at 4.8% in November compared to the median forecast of a 5.0% increase.
The dollar index experienced instinctive weakness in the aftermath of a not as strong as expected labor market report, falling back to test the 96.00 level from the previous 96.20 level. Analysts can now wonder if the data was strong enough for the Fed to justify stepping up its reduction in quantitative easing in January when it meets to decide on its policy later in the month.