US Labor Market Shows Resilience with Strong Job Growth and Declining Unemployment Rate

US job growth accelerated in November, with nonfarm payrolls increasing by 199,000 and the unemployment rate falling to 3.7%. The drop in the jobless rate alleviated fears of an impending recession and suggested that expectations of an interest rate cut by the Federal Reserve were premature. While the labor market is cooling, payroll gains remain above the level needed to keep up with population growth. The healthcare sector led the increase in payrolls, while retail employment declined. Average hourly earnings rose by 0.4%, maintaining an annual increase of 4.0%. The rise in labor supply could help control wage inflation, but wages are still rising too fast to meet the Fed's 2% inflation target.