U.S. nonfarm payroll rises strongly in November, jobless rate unchanged at 4.1 pct

The U.S. economy recorded a rise in new jobs in the month of November, coming in above market projections. Employment rose a robust 228k, as compared with consensus expectations of a rise of 200k. The jobless rate remained stable at a 17-year low of 4.1 percent.

Looking at the details, the report looks strong. Growth of employment on the goods side of the economy rose by 62k on rises in construction and manufacturing. The services sector employment rose strongly by 159,000 driven by education and health and business services, which recorded gains of 54k and 46k, respectively.

The overall participation rate remained the same at 62.7 percent. The employment to population ratio dropped a bit to 60.1 percent; however, it is still higher than one year ago.

Meanwhile, the average hourly earnings rose modestly by 0.2 percent sequentially. Wage gains were up 2.5 percent on a year-on-year basis, faster than inflation. But it is increasingly looking a puzzle in a labor market where the pool of unemployed and discouraged workers is below its pre-recession levels, stated TD Economics in a research report.

Wage gains are expected to pick up in the coming months. Continued progress in the labor market is expected to see the Fed carry on with hiking rates at a gradual rate.

At 15:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 121.28. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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