While the US labor market experienced a November release of 155,000 versus expectations of 198,000, the market remains robust as average hourly earnings gain 0.2 percent versus a 0.3 percent forecast. The October jobs release was revised lower from 250,000, to 237,000 with the September release being revised upward from 118,000 to 119,000. Generally the components of the release remain solid with job creation in services-related industries increasing by 132,000 and goods producers which added 29,000. Manufacturing added 27,000 workers. The participation rate being unchanged at 62.9 percent and the size of the labor force growing by 133,000 to 162.77 million.
In a separate gauge that includes discouraged workers and those holding part-time jobs rose from 7.4 percent to 7.6 percent. The unemployment rate for African Americans fell 0.3 percent to 5.9 percent, the lowest on record. One key number that we at Classiarius do focus on is the 3 month average of job creation which over the past 3 months is 170,000. We would call this number, especially well into a maturing recovery a solid number as job creation remains consistent and more importantly, given the focus that the Trump Administration has put on manufacturing jobs, the 27,000 jobs created last month is robust.
Manufacturing employment has increased 288,000 over the year with many being created in the durable goods industries. Note that durable goods are all products that are made that last 3 years of more – home appliances such as refrigerators, factory machinery, sporting goods and other items that are not destroyed right away. Of course this is one the political talking points of the Trump White House as bringing hard manufacturing jobs back to the US is a key theme for him.