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December 08, 2017

NAFCU's Long: Jobs report "solid," keeps Fed on track for rate hike

NAFCU Chief Economist and Vice President of Research Curt Long said Friday's jobs report–with 228,000 jobs gained in November – keeps the Federal Open Market Committee (FOMC) on track to raise rates this month.

The unemployment rate remained at 4.1 percent in November as 148,000 workers joined the labor force, matching the lowest unemployment rate since 2000.

"This was a solid report, albeit one that failed once again to show ever-elusive wage growth," said Long. "But the addition of 230,000 jobs combined with steady unemployment will not give the Fed any pause as officials prepare to raise rates later this month."

The FOMC's next two-day monetary policy meeting is set for Dec. 12-13.

In other report data, total private-sector payroll employment increased by 221,000 jobs during November. The goods-producing sector increased by 62,000 jobs, while the service sector increased by 159,000 jobs. Public sector employment rose by 7,000 jobs from the prior month.

Average hourly earnings increased 5 cent to $26.55 in November. Over the last 12 months, wages are up 2.5 percent. Since 2009, year-over-year wage growth has averaged just 2.2 percent.