Labor Market Tightens as Unemployment Rate Drops to Nine-Year Low and Job Growth Remains Strong

Jobs, Skills and Training

Employers added 178,000 jobs in November, in line with the average 180,000 per month thus far in 2016, and the unemployment rate dropped to 4.6 percent, its lowest level since August 2007, as the number of unemployed fell by 387,000.  Average weekly earnings have increased by 2.5 percent over the past year, but remain below the 3.2 percent pace prior to the last recession.  However, weekly earnings growth in some industries is running above 3.0 percent, including leisure and hospitality (4.1%), information (3.3%), and wholesale trade (3.3%).  In November, just six industries accounted for 70 percent of the job growth with the largest growth occurring in:

• Health Care (+28,400);
• Professional and Technical Services (+23,700);
• Employment services including temporary help (+18,900);
• Construction (+19,000);
• Bars and restaurants (+23,700); and
• Local government (+14,000).

Notably, manufacturing declined for the fourth straight month (-4,000) and has lost 54,000 jobs over the past year.  Utility industry employment also fell in November (-10,000).  Most other industries were little changed.