U.S. adds 321,000 jobs in November, the most in nearly three years

WASHINGTON A burst of U.S. hiring in November — the most in nearly three years — added 321,000 jobs and provided the latest evidence that the United States is outperforming other economies throughout the developed world.

In addition, the government said Friday that 44,000 more jobs were added in September and October combined than it had previously estimated. So f ar this year, job gains have averaged 241,000 a month, putting 2014 on track to be the strongest year for hiring since 1999.

The unemployment rate remained at a six-year low of 5.8 per cent.

“These were boom-like numbers,” said Mark Zandi, chief economist at Moody’s Analytics. “They indicate that the U.S. economy is on very solid ground.”

November’s robust job growth, reflecting a steadily rising economy, could make it likelier that the Federal Reserve will start raising interest rates by mid-2015 as many economists have speculated. The Fed has kept its key short-term rate at a record low near zero since 2008 to support the economy.

The job gains last month coincided with a sharp increase in workers’ pay. The average hourly wage rose 9 cents to $24.66, the biggest gain in 17 months. Still, over the past 12 months, hourly pay has risen just 2.1 per cent, barely above the 1.7 per cent inflation rate.

Hiring last month was broadbased but particularly concentrated in retail, temporary services and transportation and warehousing. Those increases likely reflect seasonal hiring for the holiday season. Shipping companies have an- nounced ambitious plans: UPS has said it expects to add up to 95,000 seasonal workers, up from 85,000 last year. FedEx plans to hire 50,000, up from 40,000.

In addition, manufacturers added 28,000 jobs in November, the most in a year, and education and health services 38,000. Professional and business services, a category that includes generally low-paid temps but also higher-paying jobs in fields such as accounting and engineering, added the most jobs in four years.

The surge in hiring comes after the economy expanded from April through September at its fastest sixmonth pace in 11 years.

The U.S. recovery still has far to go to fully rebound from the Great Recession, given that many people without jobs have stopped looking for one and are no longer counted as unemployed and many others have received little or no pay increases.

“At this rate, we won’t return to pre-recession labour market health until October 2016 — nearly nine years since the recession began,” said Elise Gould, economist at the Economic Policy Institute.

Even so, the improving U.S. job market contrasts with weakness elsewhere around the globe. Growth among the 18 European nations in the euro alliance is barely positive, and the eurozone’s unemployment rate is 11.5 per cent. Japan is in recession.

Most recent figures on the economy have been encouraging. Americans are buying more cars, which will likely keep f actories busy in coming months. Auto sales last month rose to their second-fastest pace this year. Car sales are on track to rise 6 per cent this year from 2013.