This breaking news article on Jobs Growth For November 2019 Skyrockets To 50-Year Record Was PUBLISHED On December 6th, 2019
Jobs Growth numbers were released this morning by the U.S. Labor Department.
- The job growth numbers came in better than expected sending the Dow Jones Industrials soaring triple digits
- The U.S. economy is booming under the Trump Administration
- We have record unemployment numbers, low inflation, low-interest rates, rising home prices, and the best economy in history
- All the positive economic news is creating a strong housing market
- More and more Americans are realizing the dream of homeownership become a true reality
- Mortgage rates are at historic lows, and lending guidelines on government and conventional loans are becoming lenient to make qualifying for a mortgage possible
- Many mortgage companies launched non-QM and alternative financing programs for homebuyers who do not meet the government and conforming mortgage agency guidelines
- Home prices have been increasing in most markets
- Due to rising home prices, both HUD and the FHFA have been increasing FHA Loan Limits and Conforming Loan Limits for the past four years in a row
- Never in history has the housing market been so strong and solid
- There are not any signs of a housing market correction in the foreseeable future
In this article, we will cover and discuss the breaking news of Jobs Growth For November 2019 Skyrockets To 50-Year Record.
Importance Of Jobs Growth For The U.S. Economy
Today’s job growth numbers stunned everyone.
- The data released exceeded analyst’s expectations
- Nonfarm payrolls skyrocketed by 266,000 in November
- This number far exceeded the expectations by analysts of 187,000
- The unemployment numbers registered at 3.5% which is the lowest rate since 1969
General Motors ended their strike which affected the job growth numbers.
More Breaking News On Spike In Earnings
This whole week has been a great week with positive breaking news in the housing sector.
- Both HUD and the FHFA increased FHA and Conforming Loan Limits for four years in a row due to rising home prices and the booming housing markets
- Job growth numbers hit a 50-year record
- To top off the great job growth data, average hourly earnings rose by 3.1% from a year ago
- Industry experts and analysts have been predicting a 3.0% wage earnings growth
Again, the economy has far exceeded economist’s expectations.
The November Stellar Job Market
The White House boasted Friday’s Job Growth number.
- The Trump economy has been rocking since President Trump took office
- Record job numbers and growth
- Record unemployment rates for Asians, Blacks, Hispanic, and Women. Historic low mortgage rates
- Booming housing market. Record high stock market
- The largest number of homeowners in history
The breaking news by the Labor Department with the nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, sent the stock market skyrocketing to all-time new record highs.
What Experts At Gustan Cho Associates Are Saying About The Jobs Growth Numbers
Michael Gracz of Gustan Cho Associates has been following the economy and the housing markets closely. Mike Gracz said the following:
Those totals easily beat the Wall Street consensus. Economists surveyed by Dow Jones had been looking for solid job growth of 187,000 and saw the unemployment rate holding steady from October’s 3.6%. The decline in November’s jobless rate came amid a corresponding 0.1 percentage point drop in the labor force participation rate, to 63.2%. Bottom line, America is working. These are very strong numbers. These are happy numbers, these are sunny Friday numbers. The jobs growth was the best since January’s 312,000 and well clear of the November 2018 total of 196,000. While hopes already were up, much of that was based on the return of General Motors workers following a lengthy strike. That dynamic indeed boosted employment in motor vehicles and parts by 41,300, part of an overall 54,000 gain in manufacturing. The vehicles and parts sector had fallen by 42,800 in October.
See the graph below:
Job growth numbers varied between job sectors.
- There were 45,000 jobs added in the health care field
- This was a great jump from the 12,000 added in the month of October
- The hospitality sector added 45,000 jobs
- The business support sector added 31,000 jobs
- The hospitality and business sectors were up 219,000 and 278,000 over the past 12 months
- As mentioned earlier, the average hourly earnings spiked 3.1% which is higher than the 3.0% forecasted
The average workweek for American workers remained unchanged at 34.4 hours.
Jobs Growth Of Discouraged Workers
Data of discouraged workers declined:
A separate gauge of unemployment that includes discouraged workers and the underemployed declined as well, falling to 6.9%, one-tenth of a percentage point below October. In addition to the robust November gains, revisions brought up totals from the two previous months. September’s estimate went up 13,000 to 193,000 and the initial October count increased by 28,000 to 156,000. Those changes added 41,000 to the previous tallies and brought the 2019 monthly average to 180,000, compared with 223,000 in 2018.
Record Numbers In 50-Years
Massimo Ressa of Gustan Cho Associates said the following:
This is a blowout number and the U.S. economy continues to be all about the jobs. The unemployment rate is at a 50-year low and wages are increasing. Business owners may be getting more cautious due to trade and political uncertainty and growth may be slow, but consumers keep spending and the punch bowl still seems full. The unemployment rate of 3.5%, down from 3.6% in October, is back to 2019 low and matches the lowest jobless rate since 1969. The U.S. economy needs to create about 107,000 jobs a month to keep the unemployment rate steady, according to calculations from the Atlanta Federal Reserve. There was some thought that the November count might disappoint after ADP reported Wednesday that private payrolls rose just 67,000. The Bureau of Labor Statistics, though, put that number at 254,000, with the remaining 12,000 jobs created at the government level. Today’s job report, more than any other report in recent months, squashed any lingering concerns about an imminent recession in the US economy. Employment growth also shows no signs of slowing further despite the historically low unemployment rate.
See the chart below:
Negative Job Sectors
Jobs growth was not uniform for all sectors. Retailers only added 2,000 net hires during the holiday shopping season. The merchandise sector gained 22,000 jobs. The motor vehicle and accessories sector gain 8,000 jobs. There was a net loss of 18,000 jobs in the clothing sector. The mining sector showed a loss of 7,000 jobs. The mining sector had a net loss of 19,000 positions since May 2019. Fears of a recession have slowed since the beginning of summer. Trump’s trade war fears seem to have stabilized. The Federal Reserve Board is taking steps to avoid a recession by cutting interest rates multiple times in 2019. Consumer confidence remains strong. The Federal Reserve Board is expected to meet next week. The Feds is expected to leave interest rates alone unless there are any signs to lower them again.