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US added 199,000 jobs in November, unemployment rate falls

The US added 199,000 jobs in November, more than 185,000 economists had been expecting. The unemployment rate fell to 3.7%. The estimate was 3.9%. Job gains occurred in healthcare and government. The numbers also got a boost from autoworkers and actors returning to work after being on strike. Yahoo Finance Live breaks down the report.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

BRAD SMITH: All right, well, we've struck 8:30 AM Eastern time and the US employment situation numbers just dropping here. For the month of November, you're seeing the print come in at 199,000 jobs added. That is the change in nonfarm payrolls. The unemployment rate ticked lower. That came in at 3.7%.

And then additionally here taking a look at some of the average hourly earnings month over month, we're still getting some of that starting to trickle in here. The average weekly hours for all employees, little change at 34.4 hours here. And the labor force participation rate coming in at 62.8% here. So again, that headline number higher than anticipated and the unemployment rate edging lower to 3.7%.

Job gains here, it seems, occurred in health care and government. Employment also increased in manufacturing. That reflects the return of workers from a strike, the BLS notes here. And then employment in retail trade, interesting there to see that decline here. So a lot that we're continuing to dig into with this report.

I mentioned that labor force participation rate here and I'm going to be digging lower for a little bit on the chart here. Little change though at 62.8%. That's been essentially flat since August. So that's some of the backdrop and context for us to remember with this report, too.

MADISON MILLS: Yeah, Brad. And as you, kind of, look into that number, I want to do a bit of a markets check here. The S&P 500 futures sliding, Treasury yields are jumping. Of course, the market's going to continue to digest these numbers that are just dropping here.

Looking at the Bloomberg dollar index rising to a session high after that post payrolls data. Seeing a little bit more of a dip in the NASDAQ, down by about 8/10 of a percent. S&P 500 down by almost half a percent there. And

Dow futures down by 3/10 of a percent, Brad, as we, kind of, digest these numbers. I'm really curious to know what the average hourly earnings are looking like year on year and also month over month. Because that is something that the Fed is going to be looking at when it comes to how the wages are looking and how strong the consumer can be in this environment.

BRAD SMITH: Ask and you shall receive, Maddie. It's a good day for you here. In November, average hourly earnings for all employees on private nonfarm payrolls rose by $0.12 or about 4/10 of a percent here.

Now, over the last 12 months, that year over year, that average hourly earnings number, that increased by 4% here. So ultimately here, a few of the sectors that we've been continuing to track, which we'll dig into just a little bit more later on. But of those sectors that saw the most job growth, health care adding 77,000 jobs. That's above the average monthly gain that we've seen of 54,000 over the prior 12 months. And then additionally government increasing by 49,000 in this most recent month of November here in line with the average monthly gain as well here.