Nov. job gains surge to nearly 3-year high

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Senior editor Owen Ullmann talks about the November jobs report announcing 321,000 added jobs — the largest one-month gain in nearly three years. (Money, USA TODAY)

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00:03 I'm Natalie the Bellagio with USA today here it talk
00:05 about the jobs report that came out this morning and it's
00:08 pretty amazing. I'm with senior editor Alex Altman and I can
00:11 tell us just what makes this so amazing. Well it was
00:15 a huge number of new jobs created 321000. That's the most
00:21 in nearly three years for months. And over ten months now
00:25 more than 200000 jobs Natalie that's the the longest streak in
00:31 thirty years so it's really quite quite amazing. So what does
00:34 that mean if big picture wise. Well. Right now we're on
00:39 track to have the largest job growth every year. In about
00:44 fifteen years. And it really means that the economy is starting
00:49 to grow on all cylinders after. Coming off a very deep
00:54 downturn. This is looking like the United States is really leading
00:58 the world in job growth. And an economic expansion. So that
01:03 sounds like pretty great news why you. Our president Obama's approval
01:07 rating so low a piece of behind this. Yeah you would
01:11 think that with this strong economic news that this would benefit
01:14 the president I think there're couple reasons that Natalie. One of
01:18 them is don't forget. The economy was really really weak the
01:22 worst economy since the great depression and people are still traumatize
01:26 them they're still kinda scarred from that it takes a long
01:29 time. For perceptions to change you know for people to say
01:33 hey things are really good again. The other factor is that
01:36 even though a lot of jobs are being created. Wages for
01:40 those who are working in continue to be pretty stagnant. Fact
01:44 I think there are only up about 2% for the past
01:47 year. So even though people are working and you know making
01:50 some money they don't feel they're really getting ahead in so
01:53 I think that kinda helps put a damper. On the good
01:57 economic news today. Well thank you so much for coming in
02:00 explaining all that sure and ask for more news go to
02:03 money dot USA today dot com.

The labor market surged in November as employers added 321,000 jobs — the largest one-month gain in nearly three years, the Labor Department said Friday.

The unemployment rate was unchanged at 5.8%.

Economists surveyed by Action Economics had estimated that 225,000 jobs were added last month.

The report, released at 8:30 a.m. ET, drove up stocks as the markets opened Friday.

Businesses added 314,000 jobs, powered by broad-based gains in professional and business services, retail, health care and manufacturing. Federal, state and local governments added 7,000.

The Labor Department revised up job gains for September and October up by a total 44,000. September's count was revised to 271,000 from 256,000 and October's to 243,000 from 214,000.

Jobs added last month were the most since January 2012 and only the second time this year that one-month gains exceeded 300,000.

Some other labor market indicators were also positive. The average work week rose to 34.6 hours from 34.5 hours, which could mean continued strong hiring lies ahead.

And the number of Americans out of work at least six months fell by 101,000 to 2.8 million.

But while wage growth ticked up, it remained modest. Hourly earnings rose nine cents to $24.66 and wages are up 2.1% the past year, slightly higher than in October but in line with the modest increases so far in the 5-year-old recovery.

USA TODAY

First Take: Watch wage growth, not job gains

Economists had expected wage gains to accelerate the second half of the year.

Still, economist Paul Ashworth of Capital Economics said in a research note that the strong monthly payroll increase bolsters the firm's view that the Federal Reserve will begin to raise interest rates as early as March -- sooner than the midyear time frame many economists anticipate -- to head off higher inflation.

"Labor market conditions are improving at breakneck speed," Ashworth said.

Equally impressive is that nearly every major industry is ramping up hiring. " Everybody seems to be on the hiring bandwagon," says economist Joel Naroff of Naroff Economic Advisors.

Last month, professional and business services added 86,000 jobs. Retailers added 50,000; health care, 37,000; and leisure and hospitality, 32,000.

Middle-wage sectors are also growing solidly. Manufacturers added 28,000 jobs and construction, 20,000.

Other employment indicators generally have been positive lately, though some have suggested that payroll growth may be slowing along with the economy in the current quarter after rapid gains in the spring and summer. Initial claims for unemployment benefits, a good measure of layoffs, are at pre-recession levels, though the four-week average rose recently.

Labor market gains have been consistently strong this year despite a mixed economy, averaging almost 241,000 additional jobs a month, up from 194,000 in 2013. Employers have added at least 200,000 jobs for 10 straight months, the best stretch since the mid-1990.

The economy has been more volatile. Many analysts project growth of 2.4% annual rate in the current quarter after growing nearly 4% or more in the previous two quarters.