U.S. employers added 256,000 workers to their payrolls in November, and the unemployment rate fell to 4.1 percent, the Labor Department said Friday.
Economists had expected 153,000 jobs and the unemployment rate to stabilize at 4.2 percent. The previous month’s jobs number was revised down to 212,000 from 227,000.
Most of December’s job creation came from the private sector, which added 223,000 workers. Economists had expected only 130,000 jobs in the private sector.
Numbers are adjusted seasonally.
Retail trade added 43,000 jobs, more than reversing the decline of 29,000 jobs in November. The leisure and hospitality sector also added 43,000 jobs, which is closer to the 2023 monthly average of 47,000 jobs than the 2024 average of 24,000 jobs.
Health care added 46,000 jobs, and social assistance added 23,000 jobs. These two categories are often described as “government-adjacent” because they rely heavily on public sector spending and are viewed as less vulnerable to cyclical economic changes.
Average hourly earnings increased by 0.3 percent and by 3.9 percent compared to last year. Economists had expected an annual wage increase of four percent.
Much stronger than expected jobs numbers are likely to reinforce expectations that the Federal Reserve will not cut interest rates again when it meets later this month. Perhaps most important, the resilience of the labor market suggests that the Fed will remain unchanged in the coming months.