• According to Labor Department’s report on Friday, US non-farm payrolls increased by 263,000 in November, and the unemployment rate remained steady at 3.7%. Meanwhile, the average hourly earnings rose twice as much as forecast.
• Job gains were mostly recorded in the leisure, hospitality, health care, and government sectors. In contrast, retail trade and transportation and warehousing showed declines. At the same time, the labor force participation rate dropped to 62.1% from 62.2% in October.
• The debilitating labor supply put upward pressure on wages. Ultimately, the average hourly earnings increased to $32.82, up 0.6% from October. However, the stronger-than-expected growth in jobs and wages is not necessarily a positive indication for the economy.