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US gains 199,000 nonfarm jobs in November even as temp employment falls

December 08, 2023

The US beat expectations and gained 199,000 nonfarm jobs in November, but temporary help services jobs resumed their downward trend.

Temp jobs fell by 13,600 in November to a total of some 2.9 million, according to the US Bureau of Labor Statistics. In addition, the previously estimated monthly gain of 6,600 in October was revised downward to just 200.

And temp jobs as a percentage of total employment — the temp penetration rate — fell to 1.86% in November from 1.87% in October.

“This month’s report continues to reflect a mixed bag and the imbalance between labor demand and supply, with ongoing job growth, continued low unemployment and improving labor force participation,” SIA President Barry Asin said. “Although the temp labor market remains soft, monthly job declines in the sector have moderated somewhat over the past year and year-over-year declines show signs of stabilizing.”

Total nonfarm jobs did beat expectations, with economists surveyed by Bloomberg expecting a gain of 185,000, Yahoo Finance reported.

November’s increase of 199,000 was also larger than the increase of 150,000 in October based on revised numbers, according to the BLS. Total jobs now stand at nearly 157.1 million.

Still, the gain in November is below the average monthly increase of 240,000 over the prior 12 months, though it is in line with job growth in recent months, according to the BLS.

Industries adding jobs in November included healthcare, up 77,000 jobs; government, up 49,000; manufacturing, up 28,000; and leisure and hospitality, up 40,000. The increase in manufacturing employment came as workers returned from a strike.

On the flip side, retail trade saw employment fall by 38,000 in November. Transportation and warehousing lost 5,000 jobs with a decline of 8,000 jobs in warehousing and storage partially offset by a gain in air transportation of 4,000.

The US unemployment rate fell to 3.7% in November from 3.9% in October. But the college-level unemployment rate was unchanged at 2.1% in November.

Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents in November to $34.10. For production and nonsupervisory employees, it also rose by 12 cents to $29.30.

For in-depth analysis of the jobs numbers, see this SIA report.