On Friday, the U.S. Bureau of Labor Statistics announced that the U.S. economy added 199,000 jobs in November and the unemployment rate fell to a fifty year low of 3.7%.
This marks the 104th consecutive month of job growth in the U.S., and the fourth consecutive month of more than one million new jobs. Job gains for the prior three months were revised up as well, with October revised up from 250,000 new jobs to 266,000, and September updated from 119,000 to 180,000.
The lower unemployment rate was largely driven by workers leaving the job market, as opposed to large job gains. The labor force participation rate fell to a three-year low of 62.9%. The number of employed people increased by 202,000, but labor force participation shrunk by 203,000; the result being a 0.2% lower unemployment rate.
Education, health care services, and professional and business services saw the largest job gains in November. However, mining and logging declined by 6,000.
The average hourly wages rose by 0.2% percent from October, and is up 3.1% year-over-year. This is a good sign, as it indicates workers’ wages are still increasing even though the number of jobseekers is shrinking.
Overall, the November jobs report was a positive one, with total job growth matching forecasts. The job growth seen over the last year is an important signal that the labor market is still strong despite the U.S. economy slowing down recently. If the job growth is able to sustain itself, it could offset some of the economic headwinds, providing a bit of relief to Americans worried about a potential recession in 2020.