CHICAGO, IL--(Marketwired - Dec 6, 2013) - November non-farm payrolls showed another stronger-than-expected result with 203,000 jobs added, as U.S. businesses largely brushed off fiscal concerns, according to BMO Economics.
The November non-farm payrolls are close to October's 200,000 gain and contribute to a healthy four-month average of 204,000.
"The latest numbers mark a solid turnaround from the four-month average until July, which was notably lower at 159,000," said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. "We're seeing hiring across the board, from construction to transportation, not to mention the strongest gain in manufacturing since early 2012.
"In the last few months we have seen American businesses hire at a fast enough pace to continue shaving down the unemployment rate. Consumers are responding by spending faster this quarter, a trend that is supported by lower gas prices and less inflation," added Mr. Gregory.
The household survey showed an expected rebound in employment from the huge drop in October, largely because furloughed civic employees were back at work. The gain of 818,000 help bring the unemployment rate down 0.3 percentage points to a five-year low at 7.0 percent.
"While there's no denying these are encouraging numbers, we still expect it will be January before we see a shift towards tapering. There are still a number of factors playing into this, including a slower economy this quarter as a result of inventory rebalancing, inflation that is moving away from the Fed's two percent target, and a less liquid Treasury market heading into year end," said Mr. Gregory.
About BMO Capital Markets
BMO Capital Markets is a leading, full-service North American financial services provider, with more than 2,300 employees operating in 16 North American offices and 29 worldwide, offering corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers in North America with US$515 billion total assets and more than 45,500 employees as at October 31, 2013.