The US economy added more jobs than anticipated last month, showing that the labour market is strong as traders parse data to determine if the economy is heading towards a soft landing.
Employers added 199,000 jobs last month, up from October's job gains of 150,000, the Labour Department reported on Friday. Economists polled by Dow Jones estimated the US would add 190,000 jobs.
The unemployment rate dipped from 3.9 per cent to 3.7 per cent.
The Labour Department reported that November's jobs report partly reflects the return of striking car workers. Job gains were also reported in health care and government.
Employment growth for November was below the average monthly gain of 240,000 over the previous 12 months, the department said.
Friday's report was expected to add more insight into whether a soft landing – that is cooling the economy without steering it into a recession – was likely.
Separate data this week showed that employers posted 8.7 million job openings in October, the lowest level since 2021, in another sign that the labour market is cooling.
Meanwhile, inflation has significantly moderated from a 9.1 per cent peak last year to its current level of 3.2 per cent. And a measure closely watched by the Federal Reserve showed prices rose by 2.5 per cent, which is not far off the central bank's 2 per cent target.
Average hourly earnings increased 0.4 per cent in November. On an annual basis, wage earnings increased by 4 per cent, which is still above the inflation rate.
Economic activity is also expected to cool in the final quarter of 2023 after gross domestic product grew by 5.2 per cent from the July-September period.
The Fed is due to meet next week for its final meeting of the year, when markets anticipate that it will leave interest rates unchanged.
Six pitfalls to avoid when trading company stocks
Following fashion
Investing is cyclical, buying last year's winners often means holding this year's losers.
Losing your balance
You end up with too much exposure to an individual company or sector that has taken your fancy.
Being over active
If you chop and change your portfolio too often, dealing charges will eat up your gains.
Running your losers
Investors hate admitting mistakes and hold onto bad stocks hoping they will come good.
Selling in a panic
If you sell up when the market drops, you have locked yourself out of the recovery.
Timing the market
Even the best investor in the world cannot consistently call market movements.
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
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