U.S. employment increased far less than expected in November, likely as millions of unemployed Americans remained home despite companies boosting wages, generous jobless benefits expiring and schools fully reopening.
Nonfarm payrolls increased by 210,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Economists polled by Reuters had forecast payrolls advancing by 550,000 jobs. Estimates ranged from as low as 306,000 to as high as 800,000 jobs.
November was the second full month of hiring following the expiration of federal government-funded unemployment benefits in early September. Data for October was revised up to show employment rising by 546,000 jobs instead of 531,000 as previously reported.
The unemployment rate dropped to 4.2%, the lowest since February 2020, from 4.6% in October. Wages increased further. The report came days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at the Dec. 14-15 policy meeting.