U.S. nonfarm payrolls increase less than forecast in November

The U.S. Labor Department announced on Friday that nonfarm payrolls rose by 245,000 in November after a downwardly revised 610,000 advance in the prior month (originally a gain of 638,000), reflecting the continued resumption of economic activity that had been curtailed due to the coronavirus pandemic and efforts to contain it. This, however, was the smallest employment gain since the U.S. job market started to recover in May.

According to the report, employment rose notably in transportation and warehousing (+145,000 jobs), professional and business services (+60,000), and health care (+46,000). Meanwhile, employment declined in government (-99,000) and retail trade (-35,000).

The unemployment rate fell to 6.7 percent in November from 6.9 percent in October.

Economists had forecast the nonfarm payrolls to increase by 469,000 and the jobless rate to drop to 6.8 percent.

The labor force participation rate decreased by 0.2 percentage point to 61.5 percent, while hourly earnings for private-sector workers rose 0.3 percent m-o-m (or $0.09) to $29.58, following an unrevised 0.1 percent m-o-m advance in October. Economists had forecast the average hourly earnings to increase 0.1 percent m-o-m in November. Over the year, average hourly earnings surged by 4.4 percent in November, following a revised 4.4 percent rise in October (originally an advance of 4.5 percent).

The average workweek was unchanged at 34.8 hours in November, matching economists' forecast for 34.8 hours.