Bad News, America: You’re Hired

Bad News, America: You’re Hired

about 1 year ago2 mins

Mentioned in story

According to data out on Friday, the US economy added more jobs than expected last month.

What does this mean?

The headlines might make it sound like jobs are hard to come by these days, but mass layoffs at the likes of Meta and Twitter are the exception, not the rule. So sure, the retail, transportation, and warehousing sectors shed workers last month – but leisure, hospitality, and healthcare more than plugged the gap. All in all, the US economy actually added 263,000 jobs in November, breezing past the 200,000 that economists predicted. Plus there are still far more vacant positions than there are workers to go around, so employers are continuing to up wages to attract applicants. No wonder average earnings jumped 0.6% from October to November – the most in a year, and around double expectations.

US jobs

Why should I care?

For markets: Fed up.

The US economy has now added an average of 392,000 new jobs a month this year – a fact that’ll do little to calm the Federal Reserve (the Fed), which hammered home last week that job growth’s still far too rapid. And now, with rising wages threatening to boost inflation again, all the Fed’s hard work could be in jeopardy. That means another 0.75 percentage point hike might be in the cards later this month – a suspicion that sent US markets tumbling when the news broke.

Hourly pay growth
Source: Reuters

The bigger picture: Putting food on the table.

Inflation’s a worry across the pond too, where surging prices are set to make this year’s Christmas dinner the most expensive Brits have tasted in at least ten years. Data out on Friday showed that the typical holiday meal will cost 22% more this year than last, as the cost of festive staples from turkey to Yorkshire puddings keeps ballooning. And at 14% more this year, even a cruelty-free vegan option is painful.

UK Christmas dinner cost
Source: Bloomberg
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