Hickey Jobs Report Update November 2023
Despite anticipated cooling in the nation’s labor market, the U.S. economy still added 199,000 new jobs over the previous month, while the unemployment rate dropped to 3.7 percent.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the largest job gains for November 2023 were seen in Health Care, Government, and Manufacturing. Average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents to $34.10, or 0.4 percent, resulting in a 4.0 percent increase over the past 12 twelve months.
The primary labor market indicators derived from the household survey improved from the previous month. In November, the unemployment rate decreased – surprising to many – to 3.7 percent. Overall, those considered to be long-term unemployed, jobless for at least 27 weeks, reduced to 1.2 million.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
Surprisingly exceeding market expectations, U.S. employers added 199,000 jobs in November, a significant increase from the previous month. However, the additional hiring trails the monthly average of 240,000 jobs.
The Health Care sector led all industries in job creation, adding 77,000 jobs, which is slightly above the monthly trend of +53,000 jobs over the past twelve months..
The average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents, or 0.4 percent, to reach $34.10 in November. While slightly over estimates for the previous month, the hourly wage increase trend has slowed to 4.0 percent over the past year.
Per the latest JOLTS report, when considered job openings versus jobless rates, the ratio of 1.34 is at levels not seen since the summer of 2021.
The nation’s unemployment rate decreased to 3.7 percent, including a reduction in those individuals considered to be long-term unemployed.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, during the month of November 2023, the American economy exceeded expectations by adding 199,000 jobs to Total Nonfarm Payroll employment, a spike from the previous month.
During November, the most substantial employment increases were concentrated in several key sectors. Notably, these sectors included Health Care, Government, and Manufacturing, which were highlighted by the ends of strike action across multiple sectors. These areas demonstrated robust job gains during the reported month, reflecting their continued significance in driving employment growth within the U.S. economy.
The change in total nonfarm payroll employment for September was adjusted downwards by 35,000 jobs, from 297,000 to 262,000. There were no revisions for the previous October employment estimates.
The primary labor market indicators obtained from the survey of households exhibited positive improvements during the course of the month. Specifically, the unemployment rate decreased to 3.7 percent in November. Key figure from this past month is a corresponding decrease in the count of individuals considered to be long-term unemployed, which makes up 18.3 percent of the total jobless count.
In November, the average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, resulting in a 0.4 percent increase, reaching a total of $34.10. When examining the past 12 twelve months, these earnings have demonstrated a growth of 4.0 percent, a continued downward trend.
Over the course of the month, the labor force participation rate slightly increased to 62.8 percent and the employment-population ratio decreased to 60.5 percent, both improving trends from the previous period.
Key Industries
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The Leisure and Hospitality sector, a dynamic industry since the onset of COVID-19, had an increase of 40,000 workers in November, primarily led by Food Services and Drinking Places. Overall, the industry is averaging 51,000 new additions to the workforce per month.
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Health Care added another 77,000 jobs in November, outpacing the monthly trend of 54,000 new workers. Job growth in Health Care was notable across various areas, including Ambulatory Health Care services, which saw an increase of 36,000 jobs, Hospitals, which added 24,000 jobs, and Nursing and Residential Care Facilities, also contributing 17,000 jobs.
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Government employment increased by 49,000 jobs, bringing the industry back above pre-pandemic job levels. Hiring in Local Government led the way for the sector with 32,000 jobs added in October.
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Social Assistance hiring increased by 16,000 jobs in November. The industry is consistently adding monthly with an average of 23,000 jobs over the previous year.
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Transportation and Warehousing continued their up and down trend over the past year with a slight decrease in total employment of 5,000 jobs. Warehousing and Storage was once again the largest loser with 8,000 less workers, while Air Transportation added 4,000 new workers, a continued trend from the previous month.
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With the ending of several major strike activities across the United States, the Manufacturing sector added 28,000 new workers in November. The critical Motor Vehicles and Parts sector was the leader with the addition of 30,000 workers, a complete reversal from the previous month.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: