November Jobs Report Expected to Show Re-Acceleration in Job Growth

According to Yahoo News, the November jobs report, set to be released on Friday morning, is anticipated to display a re-acceleration in job growth after worker strikes impacted the October report. The Bureau of Labor Statistics' monthly labor report is predicted to reveal that nonfarm payrolls increased by 185,000 in November, while the unemployment rate remained steady at 3.9% from the previous month. In October, the US economy added 150,000 jobs, and unemployment rose to 3.9%. Key numbers Wall Street will be examining include nonfarm payrolls, the unemployment rate, average hourly earnings (month-on-month and year-on-year), and average weekly hours worked. The report will serve as a test for the stock market, as investors are betting that the Federal Reserve is done hiking interest rates and are widely expecting rate cuts in 2024. This thesis is based on the labor market normalizing from its pandemic boom and inflation slowing. If the report supports this narrative, it could boost equities. Recent data this week indicated signs of cooling in the labor market. The Job Openings and Labor Turnover Survey (JOLTS) report released on Tuesday showed the ratio of job openings to the number of unemployed workers fell to 1.34, its lowest reading since August 2021. This decline suggests a labor market coming into a better balance between supply and demand, as referenced by the Federal Reserve.