November demonstrated robust job creation, surpassing expectations with nonfarm payrolls increasing by 199,000, slightly exceeding the estimated 190,000, according to the Labor Department. The unemployment rate dropped to 3.7%, lower than the forecasted 3.9%, and the labor force participation rate edged up to 62.8%. The broader unemployment rate, inclusive of discouraged workers and part-time positions, declined to 7%. Health care led job growth, adding 77,000 jobs, while hourly earnings rose by 0.4% for the month and 4% annually. However, the retail sector lost 38,000 jobs, with half coming from department stores, and transportation and warehousing saw a decline of 5,000 jobs.

The strong but moderating labor market in November received mixed reactions from markets, leading to modestly negative stock market futures and surging Treasury yields. Health care, government, manufacturing, and leisure and hospitality were significant contributors to job gains, while retail and transportation faced declines. The duration of unemployment fell sharply to an average of 19.4 weeks, the lowest since February.