Labor Market and Economy Report: A Look at Trends in November 2024

Executive Summary

Job Growth

In November, the U.S. economy added 227,000 new jobs. The following industries experienced gains: healthcare (+53,600), leisure and hospitality (+53,000), government (+33,000) and social assistance (+18,700). This steady growth highlights a return to normalcy after hurricanes in the southeast heavily impacted employment numbers in October. Employment statistic from October have since been revised, up from +12,000 to +36,000.

Other industries Aston Carter supports experienced the following job growth and loss last month: aerospace and defense (-36,400), architecture and engineering (+10,400), automotive (-400), construction (+10,000), manufacturing (+22,000), and utilities (-100).

Unemployment and Labor Force Participation

The unemployment rate increased slightly from 4.1% to 4.2% between October and November while the the labor force participation rate fell slightly from 62.6% to 62.5%.

Unemployment rates specific to the industries Aston Carter supports were as follows for November: finance and insurance (2.4%); professional and business services (4%); hospitals (1.6%); utilities (1.5%); manufacturing (3.4%), and construction (4.2%).

Among skilled labor categories Aston Carter sources talent for, unemployment in business and financial was 3.1% and office and administrative was 3.8%.

Inflation

The year-over-year inflation rate increased by 2.7% between November 2023 and November 2024, slightly above October’s reading of 2.6%. “Core” inflation — the consumer price index for all items minus food and energy (two volatile categories) — increased by 3.3% year-over-year. Having remained consistently above 3% throughout 2024, the steady core inflation rate suggests that that inflation may not be slowing as quickly as policymakers would like. The Federal Reserve leadership has announced they’re in no rush to lower interest rates and will act carefully regarding future rate cuts.

Wage Growth

Average hourly earnings increased by 4.% for the 12 months ending November. “Real” average hourly earnings (wages adjusted for inflation) increased by 1.3% between November 2023 and November 2024, showing that average hourly earnings are keeping up with inflation, though consumers may still be feeling the pressure of higher prices.