A "now hiring" banner is seen outside a private school in Los Angeles, California on January 27, 2021. The Labor Department said the economy added 263,000 jobs in November. File Photo by Jim Ruymen/UPI | License Photo
Dec. 2 (UPI) -- The economy added 263,000 jobs in November while the country's unemployment rate was unchanged at 3.7%, according to new figures released by the Labor Department on Friday.
The figures from the report -- produced from its monthly household and establishment survey data -- showed notable gains in the leisure and hospitality, healthcare and government sectors while spotting declines in the retail trade, and transportation and warehousing sectors.
The November total was below the 2022 average monthly job gain of 392,000. But November's job growth was more than the 200,000 economists surveyed by Dow Jones expected. The department said the total was in line with the average over the past three months of 282,000 created jobs per month.
"Monthly job growth has averaged 392,000 thus far in 2022, compared with 562,000 per month in 2021," the report said.
Leisure and hospitality added 88,000 jobs last month, including a gain of 62,000 in food services and drinking places. The sector, though, is averaging less than half of its regular gain of 196,000 jobs per month in 2021.
Employment in healthcare increased by 45,000, with gains in ambulatory healthcare services (23,000), hospitals (11,000) and nursing and residential care facilities (10,000).
Governments added 42,000 jobs in November, mostly in local government (32,000). Government employment has increased by an average of 25,000 per month in 2022, off from 38,000 per month in 2021.
Service industry payrolls increased by 24,000, as personal and laundry services added 11,000 jobs over the month. Other services employment has increased by an average of 15,000 per month thus far this year.
Retail trade payrolls fell by 30,000 in November including in merchandise stores (32,000), electronics and appliance stores (4,000), and furniture and home furnishings stores (3,000). Those losses were offset in part by gains job gains in motor vehicles and parts dealers (10,000).
"A stronger-than-expected jobs report illustrates the wage problem that the Federal Reserve is facing," Independent Advisor Alliance Chief Investment Officer Chris Zaccarelli said in a note. "Average hourly earnings continue to climb and that wage pressure, in conjunction with low unemployment, will keep inflationary pressures elevated.
"For those that believe the Fed will be cutting rates next year, we would remind them that inflation wasn't transitory, and this jobs report is another example of why the Fed is going to be fighting inflation for a much longer period than many currently expect."