Commentary
The November jobs report showed that the economy added 263,000 new jobs, considerably better than the consensus estimate of 200,000 jobs. This morning’s print is 21,000 fewer jobs than were created in October 2022 and 384,000 fewer jobs than were created in the COVID recovery period of 2021. Net revisions for August and September added another 29,000 net new jobs. (It is generally believed that 200,000–250,000 jobs are required to accommodate population growth.)
The jobs print, 30 percent-plus more than were expected, very likely sets up continued rate hikes from the Federal Open Market Committee, the policy-making arm of the Federal Reserve, until there is a tipping point that indicates inflation is on a clear glide path toward the Fed’s preferred target of 2 percent….